View Full Version : A Weekly Look, Week Ending 10/10/14

The Dollar

The dollar has shot up like a rocket since July. Finally the dollar printed a trend line break on Wednesday that signaled a daily cycle decline.


We can see that the other daily cycle corrections during this ascent took the dollar back to the 20 day MA. Currently the dollar has retraced to the 20 MA, which coincides with the previous three year cycle peak.


The bullish reversal on Thursday followed by the swing low on Friday indicate that the dollar was in an extended daily cycle, like gold. Since the weekly cycle is at week 22 we can expect to see this new daily cycle peak on or before day 8 before rolling over into an intermediate cycle decline.


Friday was day 45 for the daily equity cycle. Stocks are in the latter part of their timing band to print a daily cycle low. The cumulative Buying on Weakness numbers of over 1.73 billion indicate a cycle low is at hand.


Stocks are currently less than 2 points away from printing a failed daily cycle. A break below 1904.78 forms a failed daily cycle confirming an intermediate cycle decline. The Weekend Report will discuss the signals of the intermediate cycle decline and the status of the yearly equity cycle.

Further discussion can be found on my blog.