The dollar’s daily cycle peaked on day 8. It managed to close above the upper cycle band for the next 3 days. The dollar then broke below the upper cycle band on day 12 in a clear and convincing manner to confirm the daily cycle decline.
The dollar continued lower until Wednesday, day 18, when it closed just below the lower cycle band. The dollar closed above the lower cycle band on Thursday, forming a swing low, then closed marginally higher on Friday. The dollar did enter its timing band for a daily cycle low on Wednesday. So a break of the declining trend line confirms a new daily cycle.
The daily equity cycle peaked on day 10. It formed a swing high then broke below the upper cycle band on day 13 to confirm the daily cycle decline. Stocks went on to print its lowest point on day 23, since the day 10 peak.
Stocks formed a swing low on Wednesday, closing above the 50 day MA. Stocks continued higher on Thursday, but closed well off the day’s high. Then stocks formed a swing high and closed below the 50 day MA on Friday, day 26, possibly resetting the declining trend line. Stocks are 4 days shy of their timing band for a daily cycle low and may begin to feel the gravitational pull from the impending daily cycle low. Stocks will need to break below Tuesday’s low of 2072.14 to in order to print a lower low in its daily cycle timing band. A break below the previous daily cycle low of 2067.93 forms a failed daily cycle, confirming an intermediate cycle decline.