This cycle failure is important on two counts. First, the current daily cycle sits on on Day 11. With a typical timing band of 30-45 days, stocks face at least a month of downside to reach the next daily cycle low. Second, the intermediate equity cycle is currently traversing Week 9, so from the weekly standpoint, stocks need up to three month to find the next intermediate cycle low.
The big question facing equity traders at this juncture is whether a yearly cycle correction will lead into a renewed rally or whether the recent peak will constitute a multi-year cycle peak, as well. Given that the current multi-year cycle is five years old... and multi-year cycles typically only run four years... the timing aspect would seem to favor a greater top. If so, the current correction may not stop with a mere test of the 75WMA, and stocks could suffer turmoil into 2015.