The dollar just sliced right through the 76.50 pivot this morning. Today also happens to be the 28th day of the current daily cycle. The normal timing band for a cycle to bottom is between 20-28 days, However the Fed’s threat to print, print, print appears to be going to stretch the dollar cycle slightly long this time.
We will look for the next swing low to mark the bottom of the cycle and the beginning of what should be a counter trend bounce. That bounce should be of the dead cat variety as the intermediate cycle still has 8 to 12 weeks yet before an intermediate bottom is due.
The next support zone now that 76.50 has been violated would be the rising trend line off the last 3 year cycle low in 08.
Once the counter trend bounce begins it should pressure the stock market down into the now due daily cycle low. In theory gold should also drop down into it’s now overdue daily cycle correction.