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The video in this report is only accessible to members

The near-term two-day pullback in both Stock indices and Treasuries hasn’t done much damage, and trends in both remain higher over the last few weeks.

Pullbacks are happening in most of the sectors that have experienced the greatest amount of gains this year, like Communication Services, REITS, and Technology. 

Sentiment had shown a few signs of getting short-term ebullient, as part of a longer-term pattern of excessively bearish sentiment.  So while minor pullbacks were possible from last week’s highs, it’s doubtful markets show too much further weakness.

Leading sectors” like sub-industry groups of Semiconductors, Transportation, and Homebuilders, have all outperformed sharply, and all of these remain attractive to buy dips.

Until/unless SPX were to break support near 4000, it’s right to buy dips, expecting a push back towards 4200 and above into February expiration.

It remains painfully clear that investor expectations on earnings effects on US stock indices as well as Fed policy expectations very well might need to be reset, as very little of the negativity has successfully brought stock indices lower as many strategists have been discussing. Furthermore, we hear non-stop on traditional media outlets th...

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