Cycle Trading

The Miners rallied out of the early March low but were halted by the 50 day MA on 3/17.

The Miners preceded to consolidate below the 50 day MA and began to be squeezed by the convergence of the 50 day MA and the rising 10 day MA.

That convergence was resolved on Tuesday.

The Miners established a daily downtrend by closing below the lower daily cycle band as the declined into the early March DCL. Since they failed to close above the upper daily cycle band during this past leg up, they remain in a daily downtrend. With the Miners approaching their timing band for the daily cycle low, Tuesday’s close below the 10 day MA signals the start of their daily cycle decline.

And part of what is driving the Miners lower is the dollar.

The dollar printed its lowest point on Monday, following the day 19 peak. Day 36 places the dollar well within its timing band to print a DCL. Tuesday’s swing low very likely means that Monday hosted the DCL. And as the dollar rallies out of its DCL that will help to push the Miners lower.