The status of the daily cycle is not clear. While the dollar formed a swing high and closed below the 10 day MA on day 22, it did not do ‘enough’ for us to label day 22 as the DCL.
However, the dollar is behaving as if day 22 was the DCL. The dollar has been trading in a narrow range for the past 3 week plus weeks. The dollar closed below the 10 day MA on Wednesday then backtested it on Thursday. A bearish break out of consolidation will signal the daily cycle decline. What is clear is that the dollar is in a daily uptrend and will remain so unless it closes below the lower daily cycle band.
Stocks rallied to close above the 4715 resistance level on Thursday.
Closing above the 4715 resistance level was our signal to add to positions. Stops can now be raised to the rising 10 day MA. RSI 05 formed a quick bullish reversal on Monday. We are now watching to see if RSI 05 will embed in overbought to indicate a continuation of the intermediate cycle advance. A quick bearish reversal will be a signal that stocks are shifting into the declining phase of their intermediate cycle.
The entire Weekend Report can be found at Likesmoney Subscription Services
The Weekend Report discusses Dollar, Stocks, Gold, Miners, Oil, & Bonds in terms of daily, weekly and yearly cycles.
Also included in the Weekend Report is the Likesmoney CycleTracker
For subscribers click here.