Stocks Keep Chugging Along

Stocks gave a sell signal on Friday.

Friday was day 28 for the daily equity cycle, placing stocks 2 days shy of its timing band for a daily cycle low. So closing below both the 10 day MA and the daily cycle trend line on Friday signaled the beginning of the daily cycle decline.

But stocks negated that signal on Monday.

Stocks formed a swing low and closed back above the 10 day MA on Monday to negate Friday’s swing low. So stocks will need to form another swing high and close below the 10 day MA to signal the daily cycle decline. Until then, stocks are in a daily uptrend and will remain so unless they close below the lower daily cycle band.

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