Key Takeaways

  • Stock indices accelerated lower after breaking support- Holding May lows is key
  • US Dollar & 10-Year Treasury yield nearing resistance after sharp two-week rallies
  • Equal-weighted Technology ETF is positive over last rolling 1-month
The video in this report is only accessible to members
The video in this report is only accessible to members
Thursday’s late day breakdown accelerated under important SPX support Friday morning at 3982 that was thought to be key to hold heading into Friday. Technically speaking, there’s not much that lies between current levels and May lows, and this is thought to be important to hold heading into next week’s FOMC meeting.  As discussed yesterday, volume has been relatively lighter on recent weakness, and despite stocks being adversely affected to real yields and the Dollar pushing higher, it’s interesting that Equal-weighted Technology has been positive over the last month (which has been disguised by weakness in large-cap “FAANG” names). Overall, I don’t see Friday’s weakness as necessitating a breakdown to new lows. Into next week I feel that prices likely can try to make a stand at/or slightly above May lows, but much will depend on the Dollar and yields both stalling out (as these both have coincided with Equity weakness).  At present, no need to “be the hero” and aggressiv...

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