Stocks continued lower on Tuesday.
Stocks typically print a daily cycle low every 35 to 45 days. So at 69 days, stocks are overdue for a daily cycle low. Tuesday’s narrow range day eases the parameters for forming a swing low. A break above 5079.84 will form a swing low. Then a close above the 10 day MA will signal the new daily cycle. I plan to discuss in the Weekend Report what stocks need to do to convince me that the pending rally is not going to be a Dead Cat Bounce.
The Dollar
The dollar closed above the 10 day MA on Tuesday.
The dollar is now caught in between the 10 day MA and the converging 50 day MA and 200 day MA. Rejection here and a close below the 10 day MA will send the dollar into a left translated daily cycle decline. The dollar is currently in a daily downtrend. The dollar a close back below the 10 day MA will indicate a continuation of its daily downtrend and signal a cycle band sell signal.
Stocks
Stocks closed below the 10 day MA on Tuesday.
Stocks continued lower this week, printing its lowest point on Friday. Friday was day 47, placing stocks late in their timing band for a DCL to form. Stocks should retrace to at least the 38% Fib level in order to complete their DCL. However, RSI 05 delivered a bullish crossover on Friday — suggesting that Friday was the DCL. Stocks are currently in a daily uptrend. If stocks form a swing low and close back above the 10 day MA that would indicate a continuation of the daily uptrend and signal a cycle band buy signal. A break above 4721.49 will form a swing low.
The entire Weekend Report can be found at Likesmoney Subscription Services
The Weekend Report discusses Dollar, Stocks, Gold, Miners, Oil, & Bonds in terms of daily, weekly and yearly cycles.
Also included in the Weekend Report is the Likesmoney CycleTracker
For subscribers click here.
Dollar
The dollar broke bearishly out of consolidation the previous Friday to extend the daily cycle decline.
Breaking bearishly out of consolidation resulted in only a 3 day bloodbath phase with the dollar forming a bullish reversal on Thursday. The dollar then formed a swing low on Friday to signal a new daily cycle. We will need to see a close above the 10 day MA to label Thursday as the DCL. The dollar is currently in a daily downtrend. The dollar will remain in its daily downtrend unless it closes back above the upper daily cycle band.
Stocks
Stocks formed a swing high on Friday.
Friday was day 43 for the daily cycle. That places stocks deep in its timing band for a daily cycle decline. A close below the 10 day MA will signal the daily cycle decline. Stocks are currently in a daily uptrend. Stocks will remain in its daily uptrend unless they close below the lower daily cycle band.
The entire Weekend Report can be found at Likesmoney Subscription Services
The Weekend Report discusses Dollar, Stocks, Gold, Miners, Oil, & Bonds in terms of daily, weekly and yearly cycles.
Also included in the Weekend Report is the Likesmoney CycleTracker
For subscribers click here.
Stocks formed a bullish reversal on Thursday.
Stocks became stretched above the 10 day MA last Friday. While stocks formed a swing high on Thursday, they also found support at the rising 10 day MA and formed a bullish reversal. The status of the daily cycle is not clear since the 10 day MA did not turn lower as stocks printed the day 35 low. If stocks deliver bearish follow through and close below the 10 day MA that will signal a continuation of the daily cycle decline — making Thursday day 42. What is clear is that stocks are currently in a daily uptrend. If stocks form a swing low above the upper daily cycle band that will indicate a continuation of its daily uptrend and signal a cycle band buy signal — in which we would label day 35 as the DCL. A break above 4422.62 will form a daily swing low.
Cycle Trading 