Stocks once again broke out to new highs and also broke the 1800 level.
Monday was day 28 for the daily equity cycle. Stocks are now 2 days shy of entering their timing band for a daily cycle low. Stocks did print a bearish reversal today. A break below 1788 forms a daily cycle high. Then a break of the daily cycle trend line confirms that the daily cycle is in decline.
Gold also printed a bearish reversal today.
Gold looks as if it printed a daily cycle low last Tuesday and formed a swing low on Thursday. Now gold is being rejected by the declining trend line without a clear and convincing break to confirm a new daily cycle. So Monday could be either day 4 or day 24. If the dollar is ready to begin a new daily cycle then this just may have been day 4 and gold’s daily cycle may have topped.
The dollar’s daily cycle peaked on day 10 and has declined since. It broke below the daily cycle trend line on Wednesday to confirm its daily cycle decline. The dollar is 2 days shy of its normal timing band for a daily cycle low. However on Monday the dollar has printed a bullish reversal off the 80.60 support level. A break above 80.923 forms a swing low and a break of the declining trend line would confirm a new daily cycle.