The dollar printed a new daily cycle high on Monday, which was day 25. With the dollar being so late in its daily cycle a swing high has good odds of marking the cycle peak. Today the dollar formed a swing high off of the day 25 peak.
After gaining over 3 points over the past month the dollar began trading sideways last week. That has eased the distance the dollar has to travel to breach the daily cycle trend line. A trend line breach is a requirement as the dollar seeks out its daily cycle low.
The current daily cycle has locked in a right translated nature. Therefore we can expect the next daily cycle to go on to print a higher daily cycle high.
I do not think that it is a coincidence that as the dollar printed a swing high that we witnessed a swing low form in other asset classes.
Gold formed a swing low today. Tuesday was day 30 for gold’s daily cycle. It is getting late in gold’s daily cycle so the odds are good here that this will mark gold’s daily cycle low. A break above the declining trend line will confirm a new daily cycle.
Oil formed a swing low last week, but broke above the declining trend line today. Tuesday’s clear and convincing trend line break makes today day 3 for oil’s new daily cycle.
The daily equity cycle peaked on day 19 and trended lower since. It printed its lowest point on Monday, day 26. Today’s clear and convincing swing low could signal a new daily cycle. The trouble is that Monday is 4 days shy of the beginning of the normal timing band for a daily cycle low. A break above the day 19 will be needed provide confirmation of a new daily cycle.