Cycle Trading

The dollar did manage to catch a bid today, however failed to form a swing low.

The topped out at 79.28 today. A break above 79.29 forms a swing low

While the dollar is testing the accelerated declining trend line, a break of the red declining trend line is needed to confirm a new daily cycle.

Gold did not do too much today.

The daily cycle peaked on day 21 and today was day 23.
Gold will need to break below the daily cycle trend line in order to confirm a daily cycle decline.

So gold did not show much follow through, the CRB Index did.

The CRB Index showed follow through to the swing high formed on Monday.
I expect that we will see gold and the Miners follow the CRB’s lead as the dollar forms a swing low and makes a trend line break.

A dollar rallying out of a daily cycle low (and quite likely an intermediate cycle low) will likely send gold and the Miners into a correction.

It’s that impending correction that should provide an opportunity to add.

Then we can kick back and relax.