Retail continues to be a drag on Discretionary

Trend still bullish -  Expecting upcoming push back above SPX-4200

While many would correctly call the sideways grinding in US Indices like SPX neutral since early February (and prices are nearly unchanged from those levels), the path of least resistance remains higher.  Despite the lack of a debt ceiling solution, the resilience in equity indices means that most indices aren’t incorrect to be holding up nicely.  (as there’s no saying that prices have to mean revert lower.) Rather, most bearish prognosticators are just wrong, in my view.

NASDAQ Composite has given a much different look than SPX or DJIA and has risen to the highest levels since last Spring.  However, equal-weighted indices like Value Line’s Arithmetic Composite have lagged the NASDAQ substantially and remain well below February lows.

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