Bearish Follow Through

Stocks dropped 1.14% on Monday. .

After being rejected by resistance at the 4715 level, stocks formed a swing high and closed below the 10 day MA on Friday. They delivered bearish follow through on Monday by closing below the 50 day MA. Stocks also started to turn the 10 day MA lower on Monday. The peak on day 9 sets stocks up for left translated daily cycle formation. A close below the previous DCL of 4495.12 will form a failed daily cycle signaling that the intermediate cycle decline has begun and quite likely — the yearly cycle decline as well. Which I plan to discuss further in the Mid-Week Update.

Leave a Reply

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

WordPress.com Logo

You are commenting using your WordPress.com 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

This site uses Akismet to reduce spam. Learn how your comment data is processed.