The dollar printed its lowest point on Monday, following the peak from day 2. Monday was only day 15, placing the buck 3 days shy of entering its timing band to print a daily cycle low. We acknowledged on Monday that due to the extended intermediate decline, the selling could exhaust itself allowing the dollar to form an early daily cycle low.
The dollar formed a swing low on Wednesday. Thursday saw the dollar close above the lower daily cycle band and breached the declining trend line to confirm today as day 2 of the new daily cycle. In the Weekend Report we will discuss why I think that the dollar may be leaving behind its yearly cycle low.
Stocks are still seeking out their daily cycle low.
Monday’s swing low was negated by stocks breaking lower Tuesday & Wednesday. While stocks closed marginally lower on Thursday, Wednesday remains as the lowest point following the day 47 peak. Stocks are deep in their timing band for a daily cycle low. A swing low and break of the declining trend line will confirm the new daily cycle. A break above 2060.30 forms a daily swing low.
Despite the near 2 week decline, stocks are still in a daily uptrend. Stocks will remain in the daily uptrend unless they close below the lower daily cycle band.