The dollar closed below the 50 day MA on Wednesday then delivered bearish follow through Thursday and Friday.
Friday was day 25 for the daily dollar cycle, which places it in its timing band for a DCL. Closing below the 50 day MA signals that the intermediate cycle decline has begun. The dollar also closed below the lower daily cycle band. Closing below the lower daily cycle band ends the daily uptrend and begins a daily downtrend. It is another signal that the intermediate cycle decline has begun. However a failed daily cycle is needed to confirm the intermediate cycle decline. A break below the previous DCL of 91.76 will form a failed daily cycle.
Stocks formed a daily swing high on Friday.
At 26 weeks, stocks are due for an intermediate cycle decline. There are bearish divergences developing on the oscillators. With a peak on day 10, if stocks deliver bearish follow through to close below the 10 day MA that would set stocks up for a left translated daily cycle formation. Then a break below the previous daily cycle high of 4480.26 can be used as a hard stop to to avoid a potential ICL decline.
The Weekend Report discusses Dollar, Stocks, Gold, Miners, Oil, & Bonds in terms of daily, weekly and yearly cycles.
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