Possible cycle turning points for USD and Gold

Following the big drop on Wednesday, stocks closed higher on Thursday.


The daily equity cycle peaked on Tuesday, day 35, then dropped over 1.8% on Wednesday to close below the lower daily cycle band to confirm the daily cycle decline.  While stocks printed a lower low, they did close higher on Thursday.  At 37 days, stocks are in their timing band for a daily cycle low.  The higher close helps to ease the parameters for forming a daily swing low.  A break above 2375.74 forms a swing low to signal a new daily cycle. I would like to see a close back above the 50 day MA before we label day 37 as the daily cycle low.

Gold also reversed on Thursday.


Thursday was day 7 for the daily gold cycle.  While gold printed a higher high, gold closed lower on the day, easing the parameters for forming a daily swing high.  A break below 1246.20 will form a daily swing high.  A close below both the 200 MA and the 50 day MA would signal that the daily cycle decline has begun.  Cycles usually print a left translated, failed daily cycle in order to complete its intermediate cycle decline.  A peak on day 7 would indicate a left translated cycle formation signaling that gold is continuing with its intermediate cycle decline.  Gold would need to break below the previous daily cycle low of 1214.30 to form a failed daily cycle.

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