An interesting development is taking shape across several markets.
Stocks, bitcoin, and oil have recently come under selling pressure, bringing them toward important support levels. Meanwhile, the dollar is challenging resistance, gold is attempting to recover from its recent decline, and bonds are testing whether their breakout can be sustained.
What caught my attention is that several markets are testing important technical levels at roughly the same time.
The dollar adds another dimension. It recently bounced off support from the 101.5 support level and is challenging resistance near 102.5.
These differences matter because a reaction at support or resistance does not necessarily mean that a significant cycle turning point has occurred. A recovery in one market could signal an important cycle low, while a similar recovery in another may represent only a temporary bounce within a larger decline.
The important question is whether these support and resistance levels will produce meaningful cycle turning points, temporary reactions, or continued divergence.
Cycle structure and the required price signals will determine the outcome.
A full discussion of the developing daily, intermediate, and yearly cycles can be found in the Weekend Report.
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