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

The near-term view for Equities continues to show a range-bound, choppy consolidation, as part of an existing downtrend.   Both bulls and bears alike typically get frustrated with these kinds of patterns, and they aren’t typically all that easy to forecast.  Bottom line, despite the mild improvement in both momentum and breadth in recent weeks, there hasn’t been the necessary “upward thrust” in breadth to argue a larger rally is imminent.  While there hasn’t been the sufficient capitulation just yet to argue for an “All-clear”, there has been some drying up in selling and far fewer stocks trading at 52-week lows.  Overall, a move back over 3902 will be important towards thinking a larger bounce to 4000 or 4040-65 can happen.  Conversely, any decline back under 3723 argues for a pullback to challenge new lows sooner than later.

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Close-up view of last month’s choppy range for $SPX provides clues  

The chart below highlights this choppy consolidation that $SPX has been trading within for the last month. As can be seen, the areas at both highs and lows have held on retests in recent weeks, making these areas very important technically for understanding whether trends are...

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