Dollar Index: A 6-8 year Bear Market has started.

The U.S. Dollar Index (DXY) has given us the strongest long-term (multi-year) Sell Signal possible. On the monthly chart, it technically entered into bearish territory (RSI = 38.790, MACD = 0.130, ADX = 33.519) but the best is seen using the Sine Waves.

This clearly shows the multi-year cycles of DXY over the course of the decades. As you see we are past the top (red flag) of the Bull Cycle and can claim with relative safety that DXY has entered into the next Bear Cycle. Though tops (red flags) and sell points are easy to spot, found clearly at the top of the Wave, Bottoms are harder. They require the use of the Time Fibonacci extension levels on the logarithmic scale. As you see (green flags) this shows that a fairly accurate place to buy during a Bear Cycle is the Fib 3 extension using 1 on the Bottom of the Sine Wave. That shows that the new Bear Cycle may last a good 6-8 years.




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