Stocks gained on Yellen’s message.
Today saw stocks break the developing declining trend line. Which causes us to reconsider if 4/11 was day 11 of a new daily cycle or day 46 of the previous daily cycle. A break above 1872.53 would provide a clear and convincing follow through to the break of the declining trend line.
The dollar still managed to close higher today after Reserve Chair Janet Yellen reaffirmed the central bank’s commitment to keeping interest rates low
The dollar is on day 4 in a new daily cycle that should see a high that exceeds the previous daily cycle high.
And as the dollar continues to rally, we should see gold continue into its intermediate cycle decline.
Wednesday was day 11 for gold’s daily cycle. Gold has 7 more days before it encroaches on its timing band for a daily cycle low. The preceding daily cycle failed. And since this is still the same intermediate cycle, we expect this daily cycle to fail as well, which should include a panic sell off into its intermediate low.