Fuel for the Fire
Still no decision on the stock market as it failed to make new highs yesterday. Until it either drops below Monday's low or breaks out to new highs we're locked in no man's land.
We have the same predicament going on with the dollar. This is the 21st week of the rally. Intermediate cycles usually don't last much longer than 20 weeks on average. So not only has the stock market stretched really long but so is the intermediate dollar cycle.
I think it's safe to say the last daily cycle bottomed at critical long term support (80). If the current daily cycle rolls over before making a new high and moves below 80 I think we would have our fuel for a runaway move in all asset classes.