Wednesday was day 41 for the daily equity cycle. It is getting late in the timing band for a daily cycle low.
The daily equity cycle normally finds a low every 35 – 45 days. Stocks printed a lower low today. The earliest a swing low can form will now be Thursday. Since it is getting in the latter part of the timing band for a low, a swing low will now likely mark the daily cycle low. A break above 1656.99 forms a swing low. With stocks now backtesting a former resistance level we will need to see if it can provide support here.
The dollar continues to trend lower in a failed daily cycle.
Wednesday was day 15 for the daily dollar cycle. The dollar is approaching its timing band for a daily cycle low.
We do need to acknowledge a second possibility that August 8th hosted a daily cycle low making Wednesday day 9. In either scenario the dollar is in a failed daily cycle, which signals that the dollar is the grip of an intermediate cycle decline.
So we expect the dollar to continue lower. The dollar still has time under either scenario the dollar for one more plunge lower into a daily cycle low. And a falling dollar should continue to lift precious metals.
Thursday will be day 11 for the daily gold cycle. After surging for over 100 points gold needed a breather. Gold appears to be forming a bull flag consolidating its gains while allowing the 10 MA to catch up. A bullish break out here will lock in a right translated nature to this daily cycle and allow gold to continue developing its bullish posture …
Cycle Trading 
Leave a reply to Joe Cancel reply