Cycle Trading

The Miners printed a lower low on Tuesday. At 26 days, the Miners are in their timing band to print a daily cycle low. Bullish divergences are developing on the oscillators that indicate that a DCL is near. The Miners are also in their timing band for an intermediate cycle low. So the odds are good that once a daily cycle low forms, it will also signal a new intermediate cycle.

A swing low and break of the declining trend line would signal a daily cycle low. However, it is still possible the see the Miners break lower.

Another potential signal would be a gap lower. The Miners gapped lower prior to printing the both the May and July daily cycle lows. Now that the Miners are in their timing band for a a daily cycle low a gap lower could exhaust the selling to set up the final daily cycle low.