Last night we looked at how the Miners were rejected by the declining trend line. Today they delivered more bearish follow through.
The daily Miner cycle peaked on Friday, day 4 as it tagged the declining trend line. Monday saw the Miners form a swing high, but found support at the 50 day MA. The Miners lost that support today closing down 1.83% for the day. This daily cycle is in trouble. A break below 20.21 forms a failed daily cycle. With the Miners on day 6 we could see the Miners decline for up to another 3 to 4 weeks.
Bonds also delivered some bearish follow through today.
The daily bond cycle peaked on day 6 as it closed just above the 50 day moving average. Now that appears to be a bull trap because bonds formed a swing high the next day, losing the 50 day MA. Bonds broke below the daily cycle trend line on Monday in a clear and convincing manner with more bearish follow through today. Bonds are in jeopardy of forming a failed daily cycle. A break below 125.67 forms a failed daily cycle. With today being day 10 means that bonds trend lower for 2 to 3 more weeks before printing a daily cycle low.