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Key Takeaways

  • Trends, momentum remain bullish, and despite Monday’s minor dip, additional strength looks likely back to new highs for $SPX, $NDX, $DJIA
  • Treasury yields and US Dollar both strengthened ahead of Infrastructure Bill signing. Gains in both look to continue this week, although should prove short-lived
  • Defensive sectors gain ground with minor breakouts in Staples, Utes, REITS

Minor stalling out Monday ahead of the signing of the Infrastructure Bill doesn’t change the near-term structure. Momentum and wave structure argues for a push back to new highs this week which should reach 4760-75 (SPX) ahead of a temporary consolidation. Overbought conditions have been alleviated, yet momentum has begun to wane given the extent of the rally without any real pullback. Near-term, further strength to new highs still likely

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US Dollar has managed to rally along with Treasury yields and precious metals all in tandem over the last week

The Dollar’s rally has accelerated over the last two weeks. This has only partially affected Commodities and has had barely any effect on Emerging markets, which largely have been showing promising signs of stabilizing ...

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