Cycle Trading

The dollar closed above the 10 day MA the previous Friday and closed above the upper daily cycle band on Tuesday to confirm that day 19 hosted the daily cycle low.

The dollar broke above the previous daily cycle high on Thursday to continue a pattern of higher highs and higher lows. Friday was day 6 for the daily dollar cycle. The dollar did not deliver any bullish follow through to Thursday’s huge day. A close back below the 97 level would signal a bull trap and indicate that the dollar has begun its daily cycle decline. The dollar is currently in a daily uptrend. It will remain in its daily uptrend unless it closes below the lower daily cycle band.

Stocks

Friday was day 49, placing stocks in the later stage of its timing band to print a daily cycle low.

Stocks have:
* Formed a daily swing high
* Broke below the daily cycle trend line
* Closed below the 10 day MA & Turned it lower
* Are late in their timing band for a DCL.

Once a swing low forms that should mark the daily cycle low. Then a close back above the 200 day MA will confirm the DCL. The high on Friday, day 45, locks in a right translated daily cycle formation which aligns with stocks being in a daily uptrend. If a swing low forms above the lower daily cycle band, then stocks will remain in their daily uptrend and trigger a cycle band buy signal.