The video in this report is only accessible to members
The video in this report is only accessible to members

The selloff took a turn for the worse with Monday’s breakdown to new multi-day lows for SPX, DJIA and QQQ.   Nine of 11 major S&P Sectors fell more than 1% on the day, while four sectors, Financials, Industrials, Discretionary, and Technology dropped more than 3%.  While the trend over the last week had been largely more sideways than bearish, Monday’s drop undercut SPX 4250, turning trends more negative.  While I expect weakness should prove short-lived at this point, it is right to have a defensive stance until SPX can reclaim 4250 on a close.   Pullbacks look to have a good shot of testing and undercutting late February lows, with the most meaningful support under 4114 from 2/24 found near 4000, a level which would allow for wave equality.  Overall, having a “bullish over 4250, bearish Under” stance makes sense until more evidence of support arises.  Longs should be focused in “Utes”, Energy and Defensive groups.

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Recent Technical Developments worth highlighting

The churning of the last week gave way rapidly to selling on Monday, which appeared very much like the start of a capitulation—like wave lower as multiple groups which were holding nea...

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