The daily equity cycle peaked on day 31. Then it formed a swing high on Wednesday to signal the daily cycle decline.
While stocks did break below the daily cycle trend line on Wednesday, more bearish follow through is needed to confirm the daily cycle decline. A close below the 10 day MA would provide such assurance.
However, stocks are in a daily uptrend. Stocks will remain in an uptrend unless they close below the lower daily cycle band.
Biotech did provide bearish follow through on Wednesday.
IBB formed a daily swing high on Monday. It delivered bearish follow through on Wednesday by breaking below the daily cycle trend line in a clear and convincing manner to confirm its daily cycle decline. Like stocks, IBB is in a daily uptrend. It will remain in a daily uptrend unless it closes below the lower daily cycle band.