The dollar has been on a tear rallying for an unprecedented 9 straight months. However, the dollar is beginning to show a kink in its armor.
The dollar did print a new daily cycle high today. A new high on day 11 continues to shift the likelihood towards this forming is a right translated daily cycle. However the dollar reversed after breaking above the important psychological $100 level. The dollar is also close to printing a bearish TSI crossover, which is a reliable indictor of a daily cycle decline. A break below today’s low of 98.84 forms a daily swing high. Then a break of the daily cycle trend line confirms the daily cycle decline.
Stocks formed a swing low today.
The daily equity cycle peaked on day 16 and has been in decline since. Stocks lost the 50 day MA on Tuesday and printed its lowest point on Wednesday, since the day 16 peak. The swing low today regained the 50 day MA, indicating a new daily cycle. Wednesday was day 26, four days shy of the normal timing band for a daily cycle low. But, a break above the declining trend line will confirm a new daily cycle.