The daily cycle count remains unclear.
The dollar broke out to a new high on Friday possibly extending the daily cycle out to day 27. I think that it is more likely that the daily cycle peaked on day 22. The dollar has been so incredibly bullish that I think that the low that formed on day 23 was a stealth daily cycle low. The new high on Friday formed off the day 23 low signals a new daily cycle.
Left translated dollar cycles typically peak by day 8. The swing low formed on Friday, day 4, signaled a new daily cycle. If our cycle count is accurate then we should see the dollar top soon and then decline into a failed daily cycle.
The daily equity cycle broke out to a new all time high on Friday, which was day 27.
Currently a total of 3.56 billion Selling on Strength has printed. This is the type of number we can expect to see at an intermediate cycle top.
Recall how we had a similar Buying on Weakness number leading into the last cycle low.
The above chart shows how the BOW numbers accumulated as stocks declined into their recent cycle low. The 4.019 billion BOW number was a huge number that signaled an intermediate cycle low.
A new high on day 27 assures us that this daily cycle will form as a right translated cycle. Which means we can expect the next daily cycle to go on to print a higher daily cycle high.
The SOS numbers seems to be at odds with our cyclical expectation of the next daily cycle printing a higher daily cycle high. I think that after the decline into the impending daily cycle low we will see stocks quickly set a new higher high. After a new higher high we will see stocks roll over into a left translated cycle, daily cycle decline that will lead into an intermediate cycle decline.
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