Looking at the weekly equity chart it looks as though we are repeating last year’s correction, just on a smaller scale.
What finally got the markets going again was operation twist.
So we have a similar pattern and a waiting a similar intervention by the Fed.
Still the groundwork has been prepared for an equity rally.
Stocks have formed a new daily cycle
And as of today equities have formed a weekly swing low along with a declining cycle trend line break. All of which signals an equity rally is imminent.
But the dollar keeps throwing us curve balls.
Thursday the DX printed a daily cycle low that was confirmed by the swing low and trend line break printed on Friday signaling a new daily cycle.
On Monday, the dollar formed a swing high and broke below Thursday’s low.
A confirmation of a new daily cycle followed up by a break below the recent dcl makes this by definition a failed daily cycle.
The fact that the dollar rallied higher into the close is noise.
Unless the day one peak is taken out, then I view this as a new failed daily cycle.
It is unclear at this point if gold began a new daily cycle, but I am favoring a new daily cycle to coincide with a failed dollar daily cycle until otherwise proven.
Cycle Trading 
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