Looking at Bonds & Miners

Bonds have been rallying out of there daily cycle low and now appear to be running into a resistance zone.

Also notice that the True Strength Indicator has risen to a level that has capped previous bond rallies.

Upon closer examination we see that bonds have formed a swing high off the day 13 peak. Bonds could still break higher, and if they do they will likely be stopped by the declining 200 MA. But notice that bonds are close to forming a bearish crossover on the True Strength Indicator. A bearish crossover would signal a daily cycle decline. Then a beak of the daily cycle trend line would confirm the cycle decline.

The Miners had a good run but now could be topping.

The Miners are also encroaching on a resistance level. Additionally the True Strength Indicator for has also reached a level that has capped previous rallies in the Miners

Unlike bonds, at 20 days the Miners have entered their timing band for a daily cycle low. But like bonds, the True Strength Indicator is about to form a bearish crossover. A break below 22.93 forms a swing high and then a break below the daily cycle trend line would confirm a daily cycle decline.

The Miners too could still go higher. But the thing to take away here is that a daily cycle peak at 20 days or beyond virtually locks in a right translated nature to this daily cycle. Therefore our expectation is to see the Miners form a higher daily cycle high in the next daily cycle. That would confirm that the Miners are in a new intermediate cycle.

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