The Dollar: This Changes Everything

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The dollar continued lower today, breaking below the August low. By breaking below the August low, the dollar has formed a failed yearly cycle.

$$$ yearly

The dollar has averaged a 36 month three year cycle for over the past 30 years. May is month 24 for the three year dollar cycle. That leaves about 10 months for the dollar to enter its timing band for its 3 year cycle low. That is enough time for one more yearly cycle.

May is month 9 for the current yearly cycle. I think that the dollar will print a yearly cycle low soon. In the Weekend Report I plan to discuss where the dollar is in its yearly cycle in relation to its 3 year cycle and also its 15 year super cycle. But suffice to say the way is down.

Stocks formed a swing low on Monday.

1 spx swing low

The daily equity cycle peaked on day 47. A swing high formed the following day, sending stocks into their daily cycle decline. Stocks printed its lowest point on Friday, closing below the upper daily cycle band. Friday was day 54, placing stocks deep in their timing band to print a daily cycle low. The swing low today very likely will mark the daily cycle low.

Stocks continue to close above the upper daily cycle band indicating that stocks are in a daily uptrend. Stocks will remain in the daily uptrend until they close below the lower daily cycle band.

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