The stock market is now entering the timing band for a move down into a daily cycle low. Today is the 29th day of the cycle and we usually get a final cycle bottom by day 40. Of course we need to allow some time for the decline to unfold so I think we can expect a top any day now.
The move down in stocks should coincide with a bounce in the dollar index as the dollar is already moving into the latter part of the timing band for its daily cycle low.
Since gold has been tracking the dollar almost tit for tat I expect the rally in the dollar to also pressure gold down into it's daily cycle low which is now due.
I have complete confidence the stock market will indeed move down into a cycle low. I'm also confident the dollar will rally during this process. Gold is questionable. There remains the possibility that it could be in a runaway move and miners have broken out to new all-time highs so there is a chance that gold could ignore the dollar rally.
This is why one shouldn't lose their core position. However late comers may want to wait and see if the dollar bounce does push gold down into a cycle low before adding to their core or adding leverage.
All this being said any dollar rally should be brief and the next leg down into the yearly cycle low will cause massive damage to the dollar as the burgeoning dollar crisis starts to intensify.
More in last nights report for subscribers...