Cycle Trading

Equities broke out to a new daily cycle high and are now just over 12 points away from the all time high.

Tuesday was day 20 for the daily equity cycle.
Stocks have another 15 days before entering the timing band for a daily cycle low.
Notice the the TSI is about to deliver a bullish crossover which indicates bullish momentum for stocks

At 20 days, if stocks can rally a few more days it will lock in a right translated nature to the current daily cycle.

This is the third daily cycle of the current intermediate cycle. Should this daily cycle print as a right translated daily cycle, the expectation would be for the next daily cycle to print a higher daily cycle high.

The current intermediate equity cycle stands at week 19.
Assuming the current daily cycle printing a right translated daily cycle in the next two to four weeks takes the weekly cycle to week 21 – 23.
The following daily cycle would then likely to form as a left translated daily cycle, printing a higher high. That could add another 7 weeks to this intermediate cycle pushing it out to about week 30.

Meanwhile, gold continued lower.

Tuesday was daily 23 for the daily gold cycle.
With each passing day, gold gets closer to printing its daily cycle low.
Gold reminds me of last spring.

Recall that last year gold printed three successive left translated daily cycles with higher lows before finally breaking through the resistance at 1620.

Makes me wonder if we will see history repeating itself …