Stocks Form Bearish Reversal


Stocks printed a bearish reversal on Tuesday.


Tuesday was day 27 for the daily equity cycle. That places stocks 3 days shy of their timing band to seek out a daily cycle low. Stocks formed a bearish reversal after breaking out to a new high on Tuesday. The bearish reversal eases the parameters for forming a swing high. A break below 2472.99 will form a swing high to signal that stocks have begun their daily cycle decline.


As we discussed here last week, even if stocks form a daily swing high to begin their daily cycle decline the bigger picture is that stocks are in a daily uptrend. This uptrend is characterized by peaks above the upper daily cycle band and lows forming above the lower daily cycle band. So even is stocks decline into a daily cycle low, they will remain in their daily uptrend until they close below the lower daily cycle band.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s