We discussed on Tuesday how stocks lost the 10 day MA. Stocks delivered bearish follow through on Thursday.
Thursday was day 29 for the daily equity cycle, placing stocks in the early part of the their timing band for a daily cycle low. Stocks should break below the day 21 low of 4305.91 in order to complete their daly cycle decline. There are bullish divergences developing on the oscillators that often precede a cycle low. There is a chance that stocks will break below the day 21 low and form a bullish reversal, which would ease the parameters for forming a swing low. Still, we should wait for a swing low to signal the new daily cycle. In the Weekend Report I plan to discuss how stocks are also seeking out their intermediate cycle low.