From (http://thefinancialphysician.com)
The dollar is toast. Today saw the daily cycle for the dollar fail in a spectacular fashion.
Thursday was day 26 for the daily dollar cycle. The dollar sliced through the 82.50 support and broke below the previous daily cycle low producing a failed daily cycle. This is significant because a failed daily cycle heralds an intermediate cycle decline is unfolding.
Notice that the prior daily cycle that bottomed on May 1st (a) also was a failed daily cycle, but that marked the intermediate cycle low. What is really significant is that this is the first daily cycle of a new intermediate cycle and it has now failed.
So we have a failed daily cycle on week 5 which also marks a failed intermediate cycle as well. That signals that the remaining daily cycles will form as left translated daily cycles until the weekly cycle low which normally occurs around week 20. However, given the fact that the prior weekly cycle ran short at 13 weeks, cycles tend to balance themselves out and it is certainly possible to see this weekly cycle extend. So we can see the dollar selling off into September or even October. And considering that this is the third intermediate cycle for the yearly cycle, this will also likely mean that this will result in a yearly cycle low.
Equities just may have printed a daily cycle low today. Thursday was day 34 for the daily equity cycle. Stocks tagged the intermediate cycle trend line and reversed higher into the close. A break above 1619.32 forms a swing low. A break of the declining (red) trend line confirms a new daily cycle.
I know that following a right translated daily cycle our cycle methodology expects to see this new daily cycle print higher high. However, we saw last year that stocks failed to make a higher high on the fifth daily cycle and that ushered in last year’s yearly cycle decline.
(By the way, I believe that we will see stocks break above 1700 before an intermediate sell off begins. We will need to keep an eye on the selling on strength numbers going forward. )
We discussed earlier this week how the corrections during this intermediate cycle were in a range from 36 – 61 points. Today brought the correction to 89 points and broke that pattern. That is another indicator that an intermediate cycle decline will take place during the next daily cycle.
Gold printed a new daily cycle high today.
That raises the likelihood that this will also be a right translated daily cycle, the second in a row. With the dollar rolling over into an intermediate cycle decline that is also a yearly cycle decline.
I believe soon there will be recognition the dollar is toast.
When that happens …
6 gold safety
Cycle Trading 
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