Cycle Trading

Tuesday the Miners broke below the daily cycle trend line signaling a daily cycle decline.

The Miners gave us a nice upside surprise today. The Miners formed a swing low and broke above the declining cycle trend line. This signals a new daily cycle.
A break above the day 6 high of 293.47 will deliver final confirmation of a new daily cycle.

We were looking for the first daily cycle to be a right translated daily cycle to signal a new yearly cycle. However, if the Miners break above the previous day 6 high they would have broke the pattern of lower highs and lower lows.

The Miners really need to break above the declining weekly cycle trend line to signal a new bullish trend. Forming a higher low and a higher high will be a good start. Also notice the bullish crossover on the weekly TSI. That is a another signal that a bottom may be in.

Now with the Miners delivering an upside surprise what about gold?

We see that gold reversed higher on Wednesday, negating the swing high formed on Tuesday. At day 16, gold will enter the timing band for a daily cycle low in two days and it will stretch for two weeks. That will allow for plenty of time for an upside surprise for gold as well.

And I believe that we can thank our Miner surprise on the dollar for finally making a decision.

We discussed the mini-triange forming on the dollar. The dollar broke to the downside marking Wednesday of day 16 of the current daily cycle. We can expect the dollar to break below the day 11 low as it seeks out its intermediate cycle low.

Now that the dollar has resumed its intermediate cycle decline giving a Miner surprise,
it looks as if the Miners may see some light at the end of the tunnel …