Cycle Trading

Wednesday was day 26 for the daily equity cycle.

Stocks formed a swing high on Monday and broke through the daily cycle trend line on Tuesday.

Wednesday saw more follow through.

Equities have entered their decline into their daily cycle low.
Since the daily cycle peaked on day 8, this daily cycle has all but locked up a left translated nature.
Left translated cycles generally fail so I am watching to see if equities take out the 1400 level.
Breaking below 1400 would signal an intermediate cycle decline.

The timing band for the low extends from day 35 to day 45 so that suggests that stocks will find their low in the next 9 to 20 days.

The 1430 level appears to be a level of support. Perhaps stocks are waiting on the next surge from the dollar to break below this support level.

Day three say the dollar test the declining intermediate cycle trend line.

A break above the declining trend line signals a new intermediate cycle.
Breaking above 80.42 forms a weekly swing low and confirms a new intermediate cycle.

While the dollar is on the verge of confirming a new intermediate cycle, gold is in the process of printing a weekly swing high.

I do not think it is a coincident that the dollar is rallying and gold has formed a weekly swing high.

I am not saying that this is the intermediate cycle top.
However, an intermediate cycle decline cannot begin without a weekly swing high.
Once a weekly decline takes hold, gold usually penetrates the 10 week moving average before printing an intermediate cycle bottom.