Technical Strategy Video:

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The video in this report is only accessible to members

Key Takeaways

  • Thursday decline proved to be the largest SPX decline since last February, yet expected that pullbacks represent buying opportunities and that last week’s lows hold
  • AMZN post market rise encouraging for Tech given its influence, but closing prices for Friday will count for more than after market spikes
  • US Dollar has sold off down to meaningful support, while Treasury yields look likely to break out into next week and push higher. 

SPX’s pullback failed to take away many of the positives brought on by a 260-point bounce since late last week.  Stock indices could be volatile again during Friday’s economic reports, but it’s thought that SPX likely stabilizes at 38-62% of its rally from 1/24/22’s lows.  Thus, key support to buy dips lies at 4450 then 4410, and given this scenario should not undercut 4366.  Any decline under 4366 puts a bearish short-term stance back on the front burner, which for now is premature.  It’s expected that a close back over 4600 would be meaningful and positive for SPX in the days/weeks to come.  Finally, while February might prove volatile and choppy, higher prices are expected into mid-to-late March technic...

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