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The turn back higher Friday occurred on fairly broad-based participation with an even more pronounced level of volume into Up vs Down stocks.  Yet, markets seem to be at a pivotal nature yet again, after a sharp rally which has not done much to improve the short-term structure.

Treasury yields look to have snapped back into the recent range that was violated, and most Elliott patterns call for a possible decline into late January before Equity markets can bottom out.

Overall, breadth continues to improve, yet Advance/Decline line hasn’t yet broken out, and TD Sell Setups are now in place for $SPY and $QQQ on hourly charts.

As seen below, prices have lifted sharply from Thursday into Friday’s close on the right hand side of the hourly S&P charts.  Yet, it will take a move back over 4035 to have confidence that a large rally is getting underway, which at the present, is premature.

Conversely, SPX-3900 is important, which held as support in Thursday’s (1/20) trading.  If this is undercut next week (which might occur on negative Tech earnings) this would directly line up with cyclical projections of a possible late January low.

Support under 3900 looks to occur between SPX-3825-3850 and would be considered...

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