Cycle Trading

.

The dollar surged to the 80 level today, then reversed.

Even with the big reversal on the dollar, we still await a break of either the upper trend line (which I redrew) or the lower trend line.

Since the dollar closed near the low of the day, any follow thru to the downside will form a swing high.

But as we have seen, for the fifth time in the last five tries, the dollar was rejected by the 80 level, this time quite convincingly.

Now, the dollar is not only having difficulty closing above the 80 level,
But was soundly rejected by it today.

We discussed last week the significance of the 80 Level.

The 80 level has acted as a significant level of support for the past 30 plus years.
Are we seeing a change of character where that is switching from support to resistance?

Oil certainly paid attention to the declining dollar today.

Oil responded positively to the dropping dollar and possibly setting its daily cycle trend line today.

Now consider that there was a respectful amount of Buying on Weakness today.
The SPY printed 143 BOW and AAPL printed 218 BOW.

The big boys are starting to position themselves for another leg higher.