The dollar broke up through the declining trend line today in a clear and convincing fashion.
This leaves little doubt that a new daily cycle for the dollar has commenced.
Our framework of expectations for the dollar calls for an early cycle top.
This is due to the intermediate cycle trend line break and the dollar printing a failed daily cycle.
A week 2 peak accompanied by an intermediate cycle trend line break indicates that this will be a left translated weekly cycle.
Left translated cycles find their bottoms within 14 to 20 weeks 71% of the time.
That suggests that the dollar should trend lower for the next 5 to 11 weeks.
That would allow for at least one and probably two more daily cycles.
The expectation for those daily cycles are to be left translated, failed daily cycles as well — printing lower highs and lower lows.
Today I was thinking that there is another cycle interpretation to consider on equities.
There is a possibility to keep in mind is that day 9 was an early half cycle low.
So equities may be coiling as they are trying to work through the resistance zone.
Once the dollar rolls over, stocks should break through this zone for one more leg higher.
BTW, there was a small (29.92 million) Buying on Weakness print today for the SPY.
This is not huge, but it does lend support to the notion that stocks will make a run higher.
While the miners were lower today, the Gold Miners Bullish Percent Index held steady —perhaps setting a trend line…
Getting back to the dollar.
Once it rolls over, I expect it to lift equities and commodities …
Cycle Trading 
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