We discussed last night how stocks closed below the 50 MA suggesting that they will break lower. Well today stocks followed through.
Tuesday was day 28 for the daily equity cycle and stocks broke convincingly below the crawl pattern. Recall that we are expecting a left translated cycle to print. With a day 15 peak, stocks are 3 days shy of forming a left translated daily cycle.
Now except for FED Day, gold and stocks have been treading inversely. So with a big down day in stocks I would have anticipated a big up day for equities, but that is not what happened.
Gold had a marginal day up today.
Wednesday was day 14 for the daily gold cycle and we see gold forming a mini triangle consolidation. Of course a break above this line signals a new intermediate cycle. But gold is still four days shy of entering its timing band for a daily cycle low. A break below should send gold to seek out a new, lower daily cycle low.
Cycle Trading 
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