Fed Chairman Jerome Powell is scheduled to speak on Wednesday.
Stocks broke out to a new high last week, but have not delivered any bullish follow through. We are starting to see bearish divergences developing on the oscillators. This has me concerned that Wednesday’s statement might trigger a ‘sell the news’ response. A swing high and close below the 4240 breakout level would indicate the daily cycle decline.
Dont we have just got ourselves a failed DC for the euro by considering prior DCL of the euro on May 5 at 1.1986? Hence a confirmed IC decline for the euro –> IC advance for dxy?
Furthermore, the monthly chart of dxy shows double bullish divergence with oscillators –> more than an IC advance for dxy, i.e. a YC advance?
And if dxy is on YC advance, the IC confirmed decline of the euro isnt it an YC…decline, in fact?
If so, than euro should get under prior ICL of 1.1704 on Mar31 with dire consequences on PM, oil, stocks.
What do you think?
I have to agree. I commented last night in in the Mid-Week Update that the dollar is now on week 3 of a new intermediate cycle. This points to January being an early 3 year cycle low.
LM
Thank you!
Cycle Trading 
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