Daily Cycle Decline Continues

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Bonds formed a daily swing high on Monday. Bonds closed convincingly below the daily cycle trend line on Tuesday confirming their daily cycle decline.

tlt

Wednesday’s rally appears to have set the declining cycle trend line. Then bonds broke lower on Thursday, day 14. Bonds still have another 4 days before entering its timing band for a daily cycle low. So bonds could trend lower for the next 1 to 2 weeks. A peak on day 10 could still yield a left translated cycle formation. Therefore we need to watch for a break below the previous daily cycle low of 131.84. That would form a failed daily cycle

Gold also closed lower on Thursday.

gld

Thursday was day 31 for the daily gold cycle. I would like to see gold break below the daily trend line before setting its daily cycle low. But gold is late enough in its daily cycle that we could get a bullish surprise. A swing low accompanied by a close back above the upper daily cycle band would indicate that gold is resuming its daily uptrend. So if that happens, then we would label day 31 as the daily cycle low.

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