I Think the Lightbulb Just Got Switched On

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I think the lightbulb just got switched on. 
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What lightbulb? 
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Why, the one in my tiny brain, of course.
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This post will be about gold and I do hope it is both enlightening (yes, pardon the pun) and better yet, I hope that what the light exposes will be truth and not just technical nonsense.
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I am going to briefly review where we have been with an old chart of gold, provide an updated chart identifying gold's most recent daily cycles, then plug the electrical chord into the wall fixture and ask you if you see what I do. Actually, I'll know if you see what I see because your light will turn on, too.
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Last weekend I introduced this daily chart of the World Gold Index (XGLD). (Yeah, Blogger is letting me upload charts now - hooray).
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Click on any chart to ENLARGE
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I have not changed the chart. What I did not mention last weekend is that this chart's time frame spans 3 intermediate cycles.
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Intermediate cycles are also know as 'weekly cycles' and for gold are normally 20-24 weeks. Each cycle length, whether a daily or weekly cycle, is measured from trough to trough - or from one bottom to the next bottom - as I have identified on this chart.
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As gold's intermediate cycles tend to be roughly 6 months in length, at somewhere around the 4th or 5th month of each is the top in price. This allows gold 4-8 weeks to descend from the conquested lofty level of the cycle high to the low that identifies the conclusion of the intermediate cycle.
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Oh oh. I see your lightbulb has not turned on. Here, let me plug you into this wall socket. There you go.  All plugged in and ready to flip the switch for you.

And I am flipping the switch for you right now.

Light.  Beautiful light.
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And this you now understand: we are 4.5 months, nearly 5 months, into gold's current intermediate cycle.  It's time for the intermediate cycle top to be in and for the correction bringing us to the low at the end of 6 month intermediate cycle to begin.
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Great.  So let's move on to the second chart which identifies the daily cycles of our current intermediate cycle. We are now zooming in for a closer look at the progression of events within this intermediate cycle.
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Here is a close up look at Gold for the entirety of the current intermediate (6 month) cycle. I have identified 4 completed daily cycles and today was Day 7 of the 5th daily cycle. The number of days counted for each daily cycle is noted below price. The counted day that was the highest day of the daily cycle is also identified.

Bull market daily cycles top on a day to the right of the midpoint day of that cycle.
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For example, daily cycle #1 was 32 days and topped on the 26th day. The midpoint day of a 32 day cycle is 16. As this cycle topped on the 26th day, this cycle was 'right translated' and demonstrates a typical cyclical characteristic found in a bull market.
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And we note that the three daily cycles following the first one were also 'right translated'. (If I miscounted cycles 2 and 3 and they should have been a single cycle of 36 days, it is 'right translated' anyway, so no harm done with the logic).
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So here is where my lightbulb found some electrical current and started to glow.
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I had forgotten that the final daily cycle in the intermediate cycle is usually 'left translated'. And if this daily cycle is relatively short, there could even be a bearish second 'left translated' daily cycle that follows.
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This makes sense because when a bearish cycle tops early - left of the midpoint day - there are lots of days left on the shot clock for price to fall considerably to the final low before the bottoming low price is reached and the cycle concludes.
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Now, let's say that I did miscount the daily cycles, as mentioned above, and the two daily cycles of 20 and 16 days were really one longer cycle of 36 days.  The summary of daily cycles within this intermediate cycle then measure as 32, 36 and 27 days.
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And today, as I mentioned, was Day 7 of the current daily cycle. By my math, gold is due to peak any day now.....certainly before Day 15 or thereabouts.
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My hunch is that gold already has peaked.....today.
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Ah heck, let's look at one more chart. The stock market and gold and silver revolve around the almighty US Dollar. It isn't always this way, but for now, it is this way.
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This is a 4 hour chart of the US Dollar continuous contract (DX). Of special note is the day and one half that the dollar rallied when the concern over Greece reached moron fever, then the following three and a half days, bringing us to today, when the dollar was brought back down to where it started 5 days ago.... Yep, everbody was waiting to hear what Ben would say today.
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Well, Ben has spoken. He affirmed that he was quitting QE2 at the end of June. He gave no hint today that he is about to implement QE3. With the implication that the money printing will more or less immediately cease, the markets have been freed from the notion that the FED is going to go right on printing money and devaluing the dollar.
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So where is the dollar now?
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As you can see from this current chart. the dollar is heading north and with conviction, too.
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Can you turn those lightbulbs down?  They are kinda blinding me. OK, thanks.
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btw - that indicator you see on the lower portion of the chart is a concoction I devised the other day.  It is the True Strength Index indicator with the Bollinger Bands applied to the TSI - along with a moving average or two.  Works pretty good.
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The charting software shown is from www.ThinkorSwim.com
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Best!
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John
tsiTrader@gmail.com