Cycle Trading

Wednesday formed a swing high on the dollar opening the door to a possible day 7 peak to the daily cycle.

We can see this morning that the dollar has reversed.

We now need to see the dollar either:
1) Break above Tuesday’s intra-day high of 80.508 signaling a continued rally
2) Break below Tuesday’s intra-day low of 79.84 signaling the dollar has entered its daily cycle decline.

Stocks are currently on day 30 for their daily cycle and have entered the timing band to print a daily cycle low.

You will notice that the TSI and MACD are signaling bearish divergence.

Should the dollar break above 80.58 that will likely send equities into a daily cycle decline.
A break below 1515.93 forms a swing high.

I also received a sell signal on my FAS Buy/Sell Indicator
(The Fas Buy/Sell Indicator is a regular feature for Weekend Report Subscribers: http://likesmoneysubscriptionservices.wordpress.com/)

The Fas Buy/Sell Indicator’s sell signal agrees with cycle analysis that we are in the timing band to seek out a daily cycle low and need to be prepared.

We will need to see which path the dollar decides to take …