Cycle Trading

http://postimg.org/image/aabxzc6tp/

Stocks printed a new all-time high on Friday. Stocks took on a bearish disposition on Monday by forming a swing high and closing below the 10 day MA today.

http://postimg.org/image/gch8df631/

We discussed on Thursday that day 26 could mark an early daily cycle low, citing past examples. Stocks would need to bullishly rebound off of the dashed trend line for this scenario to be valid. A break below the dashed trend line would mean that today was day 31 and stocks have begun their decline into a daily cycle low.

Meanwhile the dollar printed another higher high today.

http://postimg.org/image/9d4ywh7d7/

Monday was day 4 for the dollar’s daily cycle. The dollar is now 19 weeks into its intermediate cycle and due for an intermediate cycle decline. Our expectation is to see this daily cycle form in a left translated manner and fail. I believe that we will see the dollar break above the 3 year cycle high before reversing into its daily cycle decline.

And if the dollar breaks above the three year high that should help to send the Miners lower.

http://postimg.org/image/b9qprozzt/

The Miners yearly cycle peaked on month 3. The Miners have now broke below the yearly cycle trend line signaling the yearly cycle decline. The Miners need to print a lower low to form the yearly cycle low. A break below the month 5 low of 21.93 will accomplish that.