The dollar printed a bearish engulfing candle on Day 13. This has eased the parameters for forming a daily swing high. A break below 82.43 forms a daily swing high and could send the buck into a daily cycle decline.
The bearish crossover on the True Strength Indicator suggests that the dollar is ready to decline into either a half cycle low or into its daily cycle low.
Lately stocks and the dollar have been trading in sync. And just as the dollar is signaling that it is ready for a breather, we see similar signs with stocks.
Wednesday was day 12 for the daily equity cycle. After closing at all time highs, stocks have formed a daily swing high. A break of the trend line will signal, at the minimum, a decline into a half cycle low.
Gold appears to be catching a bid as the dollar and stocks seem ready for a breather.
Being 4 days shy of the timing band for a low, I remain skeptical of a 14 day low. However gold did deliver a trend line break and a bullish TSI crossover. And both the Miners and the CRB also appear to be leaving behind daily cycle lows. A clear and convincing break above the declining trend line will force us to label day 14 as a daily cycle low.