Cycle Trading

The SPX broke above the previous daily cycle high on Tuesday.

By doing so it confirmed a new daily cycle began last Tuesday, making today day 5.

So while the Dow closed at all time highs, the SPX closed 36.3 points off the all time highs, which is 2.3% away.

A little follow up to last night.

Last night we discussed that the AUD was deep in the timing band and printed a reversal.
Tuesday it formed a swing low.
The AUD stopped just short of breaching the declining cycle trend line which would confirm a new daily cycle

The dollar as yet to form a swing high.

The daily dollar cycle peaked on Friday and is rolling over.

However there is no swing high or trend line break yet to confirm the dollar has entered a daily cycle decline.

Friday saw Gold back test its recent daily cycle low.

Tuesday was day 8 for gold’s daily cycle and we see gold running into resistance at the 1580 level.

Maybe gold is waiting on a swing high on the dollar before breaking above that 1580 level.

Such a move should set things in motion …