The Dollar
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Friday was day 15 for the dollar’s daily cycle. The new high on Friday locks in a right translated nature to this daily cycle.
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The dollar is now three days shy of entering its timing band to print a daily cycle low. It looks as if the dollar set its daily cycle trend line on Thursday. A swing high accompanied by a trend line break will signal the daily cycle decline.
Stocks
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The daily equity cycle printed a all-time high on Tuesday. After two days of consolidation stocks back tested the previous daily cycle high before rallying into Friday’s close.
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There is a bearish divergence developing on the True Strength Indicator that signals weakness ahead. A break below the 10 day MA will signal a move down into a half-cycle low at a minimum.
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