Cycle trading: The weekend report preview
|The Dollar
The dollar found support at the 50 day MA and formed a swing low.
The dollar rallied through Friday to close above the 10 day MA. 14 days is too early to expect a daly cycle low. However the the currency markets have been very erratic. And the dollar’s previous daily cycle ran long at 46 days. So a shortened daily cycle balances out the cycle counts. Since the dollar closed above the 10 day MA we will label day 14 as an early daily cycle low. The dollar is in a daily uptrend. The dollar will remain in its daily uptrend unless it closes below the lower daily cycle band.
Stocks
Stocks have been volatile since emerging from the day 35 low.
Stocks closed above the 10 day MA and managed to turn it higher which indicates that day 35 was the daily cycle low. Stocks ended the week closing below the 10 day MA to set up a possible undercut of the day 35 low, which would extend its daily cycle decline. Stocks continue to close below the lower daily cycle band, indicating that stocks are in a daily downtrend. Stocks will remain in their daily downtrend until they can close back above the upper daily cycle band.
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