We discussed here last Tuesday that our expectation for Bonds would be to form a left translated daily cycle. That appears to be unfolding.
The chart above is an updated chart from the Weekend Report. It shows that bonds are in their 5th daily cycle. While bonds printed a new intermediate high in this 5th daily cycle, the True Strength Indicator is developing a bearish divergence which is signaling an intermediate cycle decline.
The day 3 peak was followed by a a swing high on Friday and a bearish follow through today. A bearish crossover on the TSI will further confirm that the daily cycle is in decline. And a break below the previous daily low of 110.54 will confirm that the intermediate cycle is in decline.
I believe that gold is also setting up for a bearish follow through.
The daily gold cycle peaked on day 7 and is currently on day 17. This mini triangle that gold is in is getting closer to the point of resolution. Gold will enter its timing band for a daily cycle low on Tuesday. Due to the aging daily cycle count the odds are getting greater by the day that this will now resolve bearishly.