Cycle Trading

Wednesday was day 19 for the dollar’s daily cycle. And we see that the dollar has reversed almost daily for the past 8 trading sessions.

There is a bearish TSI crossover with an aging daily cycle count.
The dollar looks to be trying to form a top here.
I believe that their is a real battle going on here with the Bulls & Bears

(My apologies for those of you that have already read some of the following comments in the comment section earlier today)

Day 17 formed a swing high and of course Tuesday, day 19 reversed that swing high. There is a lot of congestion which we can appear at turning points.
This sort of reminds me of the dollar back in early January, 2012.

After a pretty strong rally, the dollar began to get congested at the 81.50 level.

The bulls managed to pierce the 81.50 level and then was exhausted and the bears took control. Also notice that there was a day 15 peak that resulted into a left translated failed daily cycle.

Stocks also have printed a few reversals over the past week.

The Daily equity peaked last Wednesday which was day 24. Last Thursday saw equities form a swing high. Wednesday was day 28 and stocks reversed off the intra-day low. Stocks are now 2 days shy of entering the normal timing band for a daily cycle low. We are waiting on stocks to either break out to a new high confirming a new daily cycle or break below last’s Thursday’s low signaling a continuation of a daily cycle decline. The TSI bearish divergence suggests to brace for lower prices.

And it is good to see the Miners have a big day up on a down day for equities

Wednesday was day 6 for the daily Miner cycle. Miners not only resisted the selling pressure of stocks but printed a big 4.16 gain.

This is the type of behavior the Miners have displayed in the past that signaled a rally was imminent.

A follow through day could provide the spark that is needed …