The Dollar
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The dollar surged on Friday’s job data, printing a new daily cycle high.
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Left translated dollar cycles tend to peak by day 8. Should the dollar continue to rally past Monday then the odds begin to shift to this daily cycle forming as a right translated cycle. A right translated formation aligns with what I am beginning to suspect on the weekly cycle. Discussion of the dollar’s weekly cycle continues in the Weekend Report.
Stocks
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The daily equity cycle peaked on day 16. A swing high and trend line break occurred on day 17 indicating a daily cycle decline.
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A close below the 50 day MA would indicate an intermediate cycle decline. There is already evidence of a an intermediate cycle decline on the weekly chart.
Normally an intermediate cycle decline is accompanied by a failed daily cycle. A failed daily cycle would see stocks break below the previous daily cycle low of 1980.90.
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