Cycle Trading

After the dollar peaked on day 2 it dropped for the next 8 days causing it to be oversold.

The dollar rallied on Friday, day 11.
This is likely an oversold bounce that will reset sentiment.
The dollar can still go higher on Monday before testing the declining cycle trend line.
I expect the dollar to be rejected by the declining cycle trend line and trend lower.
The dollar has another 6 days before it enters its timing band for a daily cycle low which could stretch out to day 25.

Also notice how the Schaff Trend Cycle has not bought into this bounce so far.

Stocks

After the reversal on Monday it appeared that stocks may have formed a half cycle low and set the daily cycle trend line.

Friday back tested that trend line.
If the dollar continues into a daily cycle low I expect stocks to break out to a new high.
Should stocks continue lower, then it would be likely that stocks have begun their daily cycle decline

Since the daily equity cycle is on day 24, stocks could have another 11 to 21 days to print a daily cycle low.

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