Cycle Trading

Wednesday was day 32 for the daily equity cycle. As we discussed yesterday how stocks eased the parameters for forming a swing low. Well stocks rallied enough today to form a swing low.

Not only did stocks form a swing low today but also broke the declining trend line which signals a new daily cycle.

The dollar also broke a trend line today.

The daily cycle sports a day 5 peak and now a trend trend break on day 9. That signals that the dollar has entered its primary decline into a daily cycle low. The dollar is well on its way to forming a left translated daily cycle that will likely see the dollar break below its previous cycle low of 80.153 and print a failed daily cycle.