Cycle Trading

The bearish reversal on day 8 remains as the daily cycle high.

The dollar closed back below the 10 day MA and the daily cycle trend line on Friday to signal the daily cycle decline. The peak on day 8, indicates a left translated daily cycle formation. Still, the dollar is in a daily uptrend. It will remain in its daily uptrend unless it closes below the lower daily cycle band.

Stocks

Stocks formed a swing low on Thursday off of support from the 200 day MA. With stocks being late in their timing band for a DCL, this had good odds of forming the daily cycle low. Then stocks broke lower on Friday.

Stocks are not only seeking out their daily cycle low, but the weekly chart also indicates that stocks are seeking out their intermediate cycle low. Most intermediate cycle declines have a failed daily cycle. The current daily cycle has not (yet) failed. But losing the 200 day MA on Friday places stocks within striking distance for a failed daly cycle. A break below the previous daily cycle low of 2722.27 will form a failed daily cycle. Stocks are in a daily downtrend and will continue in its daily downtrend until it can close back above the upper daily cycle band.