Stocks lost the 50 day MA on Tuesday. They delivered more bearish follow through by losing the 10 day MA on Wednesday.
Wednesday was day 28 for the daily equity cycle. With a peak on day 8, stocks appear to be headed toward their daily cycle decline. But the 725 million BOW suggests one more bounce before the final decline into the daily cycle low.
Gold also appears headed toward a daily cycle decline.
Gold’s daily cycle peaked on Thursday, day 13. Gold will enter its timing band to print a daily cycle low on Thursday. A swing high has formed and gold appears to have begun declining into its daily cycle low. A break below the daily cycle trend line will confirm gold’s daily cycle decline.
A possible scenario would see stocks make one more bounce before rolling over. The equity bounce would send gold into a daily cycle low. Then gold rallies into a new daily cycle as stocks complete their daily cycle decline.