Wednesday was day 3 for the dollar’s daily cycle and the dollar continued to rally forming a weekly swing low.
A weekly swing low is required to initiate a new intermediate cycle. The next task for the dollar is to break the declining weekly cycle trend line (as outlined last night) to confirm a new intermediate cycle.
Stocks printed a reversal today.
Stocks are now in week 18 of their intermediate cycle. Allowing for another 3 to 5 weeks for the current daily cycle low to print would take the weekly equity cycle out to weeks 21 – 23. That increases the likelihood of the current daily equity cycle ending in an intermediate cycle low.
Wednesday was day 15 of the daily equity cycle. Stocks did deliver some topping signals today which included the Money Flow Index braking below the 80 level. There was also a bearish TSI crossover.
If today was the cycle peak, that would leave another 3 to 5 weeks for a failed, left translated daily cycle to form leading to an intermediate cycle low.