The Dollar
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The dollar’s daily cycle peaked back on 4/13/15 on day 11. Then the dollar declined, printing is lowest point a week ago Friday.
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The dollar formed a daily swing low on Monday. It then broke above the declining trend line on Tuesday closing above the lower cycle band which confirms a new daily cycle. The robustness of the rally is consistent with a new intermediate cycle.
Stocks
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Stocks broke above the previous daily cycle high on Monday, confirming a new daily cycle.
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Stocks spent the rest of the week consolidating the break to new highs. With Friday being day 11, there is plenty of time in the daily cycle for stocks to make another push higher. However, the True Strength Indicator is about to deliver a bearish crossover, which usually signals a daily cycle decline. If stocks lose the break out and enter a daily cycle decline then this daily cycle would take on a left translated formation which would signal an intermediate cycle decline.
However there are signals on the weekly and yearly charts that indicate a possible stealth intermediate low has been left behind. The intermediate and yearly cycles are discussed in the Weekend Report.
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