Recently we have been chronicling how the dollar has begun to deliver bearish surprises, most recently from 3/16. After today’s action, it bears repeating, again …
The chart from 3/16 (above) highlights the bearish surprises that the dollar has been delivering recently.
Today the dollar delivered another bearish surprise.
The dollar is on day 6 for its new daily cycle. Closing below the lower daily cycle band indicates that the dollar has begun its daily cycle decline. The dollar is currently in a daily down trend that is characterized by highs below the upper daily cycle band and lows below the lower daily cycle band. The dollar will remain in a daily down trend until it can close above the upper daily cycle band.
Meanwhile stocks may have left behind a stealth daily cycle low.
The daily equity cycle peaked on day 27. Stocks went on to form a swing high, break the daily cycle trend line, and print its lowest point on Thursday, day 29. The swing low from Monday and bullish follow through today makes us consider that a stealth daily cycle low was left behind on Thursday. If stocks break out above the day 27 high of 2056.60 that will strengthen the stealth daily cycle low scenario.
Stocks have been in a daily uptrend. Stocks will remain in a daily uptrend until they close below the lower daily cycle band.