The dollar continued higher this week, breaching the 100 level as it printed a higher high on Friday.
Friday was day 12 for the dollar’s daily cycle. A new high on day 12, or after, swings the odds over to this daily cycle forming as a right translated daily cycle, which is in agreement with what we see developing on the weekly cycle, which is covered in The Weekend Report.
The daily equity cycle peaked on day 16. A swing high and trend line break occurred on day 17 indicating a daily cycle decline.
Stocks printed their lowest point on Wednesday, day 26. A swing low formed on Thursday that regained the 50 day MA, indicating a new daily cycle. While stocks closed lower on Friday, they left behind a bullish tail indicating an early daily cycle low has been left behind. A break above the declining trend line will confirm the new daily cycle. But a break below the (dashed) intermediate trend line signals an intermediate cycle decline.
While the normal timing band for a daily cycle low stretches from day 30 to day 45, stocks have been known to print early daily cycle lows. Below is a chart from the Likesmoney archives chronicling the 2011-2012 yearly cycle that has two examples of early daily cycle lows.
Notice that a 25 day DCL printed in March and then a 24 day DCL printed in April.
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