Cycle Trading

It’s pretty safe to say that a low was left behind us.

Equities formed a low last Tuesday.

A swing low and declining cycle trend line break printed last Thursday.
Now today, we have a 1.5% up day plus day with 86.9% up volume.
This is beginning to add up to an intermediate bottom.

Another follow through day of 1.5% would be another check mark under intermediate cycle bottom.

The puzzling thing is that weekly cycles tend to end with a failed daily cycle.

There was no failed daily cycle here.
The dollar could help to clear up this picture.

The dollar’s daily cycle is on day 10.

If the dollar breaks below the previous daily cycle low, printing a failed daily cycle, that would be congruent with a new intermediate equity cycle.

Now the dollar cannot break below the previous daily cycle low with out first breaking below the rising daily cycle trend line.

If the dollar breaks below the rising daily cycle trend line, that would likely send equities higher and further support the notion of an intermediate equity bottom printing last week.

So for now, let’s watch the dollar for some clues …