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Thursday’s reversal looks important technically as a bullish development which can carry US Equity markets higher into the middle part of May.   While some might question the viability of this week as being a breakout, a weekly close above SPX-4137.63 represents the highest weekly close since last Fall. 

Furthermore, QQQ has also closed at the highest levels since last August.  While Technology has some work to do to recover some of the damage it’s experienced in recent weeks, Large-Cap Technology can still pave the way for the next couple weeks.

Healthcare, Discretionary and Energy also look like sectors which can show above-average performance into the month of May.  Healthcare in particular which broke out last week relatively speaking to the SPX, is heading into a very seasonally bullish time.

Thursday’s reversal happened not just for Equity markets but also Treasury markets and the US Dollar.  I expect that over the next 3-4 weeks, Treasuries and the US Equity market should advance, while the US Dollar pulls back to new lows.

However, this move likely will face some initial headwinds into next week’s FOMC meeting.  I expect that Monday/Tuesday ...

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