The Dollar
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The dollar’s daily cycle peaked on day 19, then formed a swing high and broke below the upper daily cycle band to confirm the daily cycle decline.
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The dollar breached the daily cycle trend line as it printed its lowest point on Monday, Day 22. The bullish reversal on Monday places the dollar in its timing band to print daily cycle low. A swing low and a declining trend line break formed on Tuesday to signal a new daily cycle.
Stocks
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Stocks broke below the August intermediate cycle low, forming a failed intermediate cycle.
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Friday was day 41 for the daily equity cycle. That places stocks in their timing band to print a daily cycle low. The large Buying on Weakness days on Wednesday and Friday suggest that the cycle low is near. Stocks need to form a swing low and deliver a declining trend line break to signal a new daily cycle.
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