Miner Correction

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The Miners formed a swing high on Tuesday following Monday’s Gravestone Doji.

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Not all swing highs mark a cycle peak, however a cycle cannot peak without printing a swing high. The Miners did deliver a clear and convincing swing high today that saw the Miners give back over 4% on the day. Tuesday was day 15 for the Miners daily cycle, which places the Miners 3 days shy of their timing band for a daily cycle low. A break of the daily cycle trend line will confirm the daily cycle decline.

The Miners have been closing above the upper daily cycle band, indicating that the Miners are in a daily uptrend. While we expect to see a break of the daily cycle trend line during the correction, as long as the Miners remain above the lower daily cycle band then they will remain solidly in a daily uptrend. Perhaps today’s swing high was the Miners sniffing out a potential daily cycle low on the dollar.

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The dollar printed a lower low on Tuesday. A swing low is necessary to mark the daily cycle low. While our daily cycle count is unclear, two signals are the signals are beginning to emerge that are consistent with a daily cycle low.

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Both the RSI and the True Strength Indicator have reached levels that have signaled other daily cycle lows. At this point the dollar needs to break above 96.85 to form a swing low. Then a break of the declining cycle trend line will confirm a new daily cycle.

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