Possible Turning Signals

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The dollar printed a bullish reversal on Thursday which is a potential turning signal for the dollar.

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Thursday was day 23 for the dollar’s daily cycle. That places the dollar in its timing band for a daily cycle low. The bullish reversal and recovering the 50 day MA are bullish signals that a daily cycle low has formed. We will need to see the dollar complete a swing low and break above the declining trend line in order to confirm the new daily cycle. A break above 101.77 will form a daily swing low.

Bonds also printed a reversal which is a potential turning signal.

1 tlt daily

Thursday was day 19 for the daily bond cycle, placing bonds in their timing band for seeking a daily cycle low. Thursday’s bearish reversal has eased the parameters for forming a daily swing high. A break below 121.79 will form a daily swing high to signal the start of the daily cycle decline. A would like to see a close below the 10 day MA for confirmation of the daily cycle decline. A new high assures us of a right translated daily cycle formation so we are expecting bonds to print a higher daily cycle low. By closing above the upper daily cycle band signals that bonds are establishing a new daily uptrend.

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