About Face

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Yesterday it looked as if stocks were going to paint us into a corner and force us to shift the daily low label away from day 35 to Tuesday. But the about face printed today makes that not necessary.

$ SPX Sharp Charts Workbench Stock Charts com 2

Stocks printed a huge down day today, dropping over 2%. The big drop erased the previous two day’s gains and saw stocks close below the 50 MA.

Had stocks broke to new highs we would have been forced to move the daily cycle low label to Tuesday. Instead, todays reversal appears to have set the declining cycle trend line for stocks. And at 10 days, stocks still have another 20 days to enter their timing band for a daily cycle low.

While stocks gave us an about face, the dollar continued to march lower.

$ USD Sharp Charts Workbench Stock Charts com 2

Thursday was day 20 for the daily dollar cycle and the dollar printed another lower low. At 20 days, the dollar is in the timing band to print a daily cycle low. A failed daily cycle here would have us view this as an extend intermediate cycle, with this being week 24.

weekly $$$

A break below the weekly trend line would confirm an extended weekly cycle count.

GDX Sharp Charts Workbench Stock Charts com 20

Gold printed another higher high today, which was day 7 for gold’s daily cycle. However, the Miners did not take advantage of the weakness in the dollar.

The Miners tested the 50 MA and then pulled and about face and closed almost 2% lower today. Should the Miners continue lower and break below 24.50 they will form a swing high and likely mark the daily cycle peak. If that happens, that would continue a pattern of lower highs.

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