The daily equity cycle peaked on Tuesday, day 30, locking in a right translated daily cycle formation. Stocks went on to form a daily swing high on Thursday to signal the start of its daily cycle decline.
Thursday was day 32 for the daily equity cycle. That places stocks in their timing band for printing a daily cycle low. The swing high that formed on Thursday broke below the daily cycle trend line providing more evidence that stocks are declining into their daily cycle low.
The typical daily cycle decline will last anywhere from 7 to 15 days. A couple of things that we can watch for will be for the RSI to get oversold and that the McClellen oscillator hit the minus 60 to minus 80 range.