Cycle Trading

The dollar formed a swing high today.

Until there is a break of the daily cycle trend line, we will not have confirmation that the dollar has begun its primary decline into a daily cycle low.

I think a close below the 80 level will be “good enough”

The 80 level has been a rather significant level.
If the dollar loses this level then I think that the daily cycle decline is in progress.
(By the way the TSI Trader had an interesting post on the dollar today: http://thetsitrader.blogspot.com/)

Silver is displaying relative strength to gold by forming a swing low today.

But with out a trend line break, it is nothing to get excited about.

Gold did not form a swing low, but had a lower closing low.

Like silver, gold needs to break the declining cycle trend line to signal a change in trend.

Equities continue to look bullish.

At day 4, stocks are still consolidating the early gains out of the daily cycle low.
We could see stocks trade sideways until the 10 day MA catches up with price.

I suspect that when the dollar loses the 80 level we will see equites break to new highs…