Cycle Trading

The dollar ran into resistance at the declining 50 day MA on Monday. The dollar was then contained by the 50 day MA — until Friday.

Closing above the 50 day MA on Friday provides more evidence that the ICL has been set. The dollar is currently in a daily uptrend.  Friday’s swing low indicates a continuation of the daily uptrend and signals a cycle band buy signal.  

Stocks closed below the 10 day MA on Thursday.  

Stocks printed its lowest point on Friday, day 32, to place it in its timing band for a DCL. Stocks will need to break below the daly cycle trend line and turn the 10 day MA lower in order to complete its daily cycle decline. Stocks are currently in a daily uptrend. They will remain in their daily uptrend unless they close below the lower daily cycle band.