If the current daily cycle continues to drop and falls below 79.34 then 1/14 would not mark a DCL.
This would be a stretched cycle in the process of declining into a yearly cycle low.
Any swing low that breaks above the declining (red) trend line that stays above 79.34 will likely mean that 1/14 was a 16 DCL and the new daily cycle was setting its daily cycle trend line.
If this second scenario plays out then the cycle expectation for this 2nd daily cycle would be to print a higher high above 80.86.
I believe that this second scenario also strengthens the case for a September stealth yearly cycle low.
Equities emerged out for the recent daily cycle low printing gains in 13 out of the previous 18 days closing above 1500 for the first time since 2007.
Stocks are getting stretched above the 10 day MA and normally seek out a half cycle low in this time frame.
Any swing high swing high could lead to a dip into a half cycle low.
Friday was day 14 for the CCI daily cycle
Notice how the CCI peaked as it tagged the declining trend line on day 11.
If the CCI did form an intermediate cycle low in late December, then this daily cycle should form as right translated and making a higher low.
Then the task ahead of the CCI would be to form a higher daily cycle high which would break the declining cycle trend line and usher in an inflationary period.
The yearly cycle sits at 7 months.
I think that the CCI is in the process in forming an early yearly cycle low. The confirmation of a new daily cycle will likely signal a new yearly cycle.
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