Daily Cycle Decline

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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.

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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.

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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.

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