Cycle Trading

Wednesday saw the dollar print another higher high.

Today was day 7 of the current daily cycle.
The Schaff Trend Cycle finally acknowledged the new daily cycle by breaking above the 30 line.

Our framework is calling for a failed left translated daily cycle.

The dollar will need to print a swing high over the next few days in order to maintain the existing framework.

Even though the dollar printed a higher high, dollar sensitive assets seem to be shrugging it off.

Oil shows a bullish divergence developing on RSI, Money Flow is about to turn positive and Oil has printed a swing low.

A break above the declining trend line will confirm a new daily cycle.

The CRB appears to be on day 2 of a new daily cycle.
The CRB printed a third consecutive higher high and tested a resistance level.
A break above this level will give a convincing signal that the three year low is being left behind.
Both gold and equities also managed to print higher highs while shrugging off a stronger dollar.

It appears that these asset classes are anticipating a dollar top.

Once the dollar prints a swing high, theses assets will be ready to run …