Just the past weekend we were looking at the weekly equity chart. Stocks are in their fourth intermediate cycle of the year and a correction is due.
There was a week 8 peak with stocks on week 13. A weekly bearish TSI divergence was signaling a pending intermediate cycle decline. Which supports the expectation of seeing the daily cycle roll over.
Today stocks delivered a surprise to the bullish side seeing stocks come within .16 of breaking to all time highs.
Monday was day 20 for the daily equity cycle. A peak on day 20 shifts the expectation for this daily cycle forming in a right translated manner.
And this move is confirmed by the transports.
The transports broke out to new all time highs today. I do not think it will take long for stocks to follow suit and break out to new all time highs. Which shifts the outlook for this intermediate cycle to now form in a right translated manner.
And here is something to keep an eye on.
The Miners have been trading sideways for the past month. Despite the recent dollar spike the daily cycle has not failed. The Miners could be signaling that the dollar rally may fizzle out. A break of the declining black trend line could signal a new daily Miner cycle.