Verification

00http://postimg.org/image/bjh1rnw6z/

The dollar broke out to a new high on Tuesday.

$$$http://postimg.org/image/uxsybtd85/

The dollar failed to deliver a break of the daily cycle trend line as it sought out its daily cycle low. But it did breach the accelerated (red) trend line. The accelerated trend line breach deep in the timing band for a DCL coupled with a break to new highs verifies 8/08 as a 27 day, right translated daily cycle low. And that makes Tuesday day 7 of the new daily cycle.

The dollar’s strength sent gold lower today.

goldhttp://postimg.org/image/srynhb9rp/

Tuesday was day 12 for gold’s daily cycle. Gold peaked on day 5 then drifted sideways. Yesterday gold tested the daily cycle trend line. Today’s trend line breach signals that gold has now entered its daily cycle decline. With a day 5 peak, gold appears to have locked in a left translated nature to this daily cycle. That gives us the expectation that gold will break below the previous daily cycle low of 1281.00. With gold on day 11 we could see gold trend lower for the next 7 to 15 sessions.

And it is not too surprising that the day that gold breached its daily cycle trend line (signaling an intermediate decline) is the same day that stocks confirmed the new intermediate cycle.

spx weeklyhttp://postimg.org/image/3knrh26np/

Tuesday was day 8 for the daily equity cycle. Stocks have now been up 6 of the last 8 days. The break of the declining weekly cycle trend line verifies that stocks have left behind an intermediate cycle low. Following a right translated intermediate cycle has us expecting to see this new intermediate cycle go to print a higher weekly cycle high.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s