Last Tuesday was day 31 of the daily cycle and the Miners printed a lower low. While day 31 is getting late in the timing band, the troubling thing about this daily cycle correction is that the Miners did not deliver a daily cycle trend line break.
After Tuesday’s low, the the Miners drifted higher into Friday and ran into resistance at the declining cycle trend line.
Monday saw the Miners break above the declining cycle trend line. They did not do so in a clear and convincing fashion, but still this shows some signs of life. With each passing day it becomes more likely that the gap will be left behind. And if the Miners break above the day 28 high 27.78, that would confirm a new daily cycle.
The dollar may be ready to lend a hand.
Friday was day 12 and the dollar printed a reversal candle. The dollar followed through on Monday by printing a swing high. A break below the daily cycle trend line would confirm a daily cycle decline.
And if the Miners begin to rally, a declining dollar could provide the wind beneath its wings.