The 6/13/14 Weekend Report Preview

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The dollar’s daily cycle peaked on day 19 when the dollar delivered a huge bearish reversal that lost the 200 day moving average. A lower low on day 20 formed a daily swing high. However a swing low formed the day after regaining the 200 MA. It appears that a right translated 20 day daily cycle low was left behind.

1 $$$ dailyhttp://postimg.org/image/jc849wcpp/

While the dollar could still break lower extending the daily cycle decline I think that the dollar is in a new daily cycle.

Stocks
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The daily equity cycle peaked on Monday and formed a swing high on Tuesday. With a peak on day 39 the odds are very good that stocks have entered their daily cycle decline.

21 spx dailyhttp://postimg.org/image/4481tparx/

Friday was day 43 for the daily equity cycle. The normal timing band for a daily cycle low extends out to day 45. Stocks need to break below the daily cycle trend line to confirm the daily cycle decline. So unless stocks deliver a 2 day plunge, we are likely to see the current daily cycle extend past day 45.

A declining daily cycle trend line is starting to develop. A swing low accompanied by a declining trend line break will signal a new daily cycle.

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