It appears that stocks have begun to crawl along the 200 day MA.
Tuesday was day 21 for the daily equity cycle. Often times a crawl pattern is a continuation pattern. Which suggests a bullish break above the 200 day MA. The 1.016 Billion in Buying on Weakness also suggest a bullish break is imminent.
Stocks have been closing above the upper daily cycle band for the past few weeks, which is an early indicator that February host an intermediate cycle low. Currently with a high on day 20, this shifts the likelihood that this daily cycle is forming as a right translated daily cycle, providing further evidence that February hosted the intermediate cycle low.
The dollar formed a swing low today.
The dollar’s daily cycle peaked on day 13 and has been in decline since then. It printed it lowest point on Friday, day 20. That places the dollar in its timing band to print a daily cycle low. Today’s swing low indicates that the dollar has begun a new daily cycle. And if so, then the dollar would have formed a higher low, which supports the notion that February hosted the intermediate cycle low for the dollar.
In the Weekend Report I break down where I believe the dollar is in its 15 year super cycle and the current 3 year cycle. That leads me to believe that the dollar has begun its yearly cycle decline. Which makes it likely that we will see this daily cycle form as a left translated cycle and fail.
I routinely break down where the dollar is in its daily, weekly, and yearly cycles in the Weekend Report. This week, as mentioned, I also discussed where the dollar was in its 3 year cycle and its 15 year super cycle. The Weekend Report is available with a trial membership.
This week I am offering a special 6 week trial membership for $15. The goal of the Weekend Report is to develop an on-going framework of expectations using cycle analysis.
The Weekend Report discusses the Dollar, Stocks, Gold, Miners, The CRB Index, & Bonds in terms of daily, weekly and yearly cycles.
And also includes the Likesmoney Cycle Tracker.
In addition to the Weekend Report, the 6 week trial membership also includes:
The Mid-Week Update and the Weekend Updates.
The Weekend Updates cover:
* The FAS Buy/Sell Indicator
* The Bullish Percentage BINGO
So please click here if you are interested in the 6 week trial subscription.