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US Equity indices and Treasury yields remain quite choppy, but it’s thought that SPX and QQQ stall out and might reverse before exceeding 9/1 peaks (SPX-4541.25, QQQ-380.83) Treasury yields look likely to break out to new 2023 highs, and I suspect this will be short-term negative for Equities.  Only on a TNX break under 4.05% would it be right to trust an Equity bounce in September

It might seem unusual to experience a 1% equity rally when Treasury yields, US Dollar and Crude are all pushing higher, but that’s exactly what happened on Thursday.

It’s doubtful that Stocks and bonds are breaking their recent correlation, and the path of least resistance remains higher for Treasury yields.

Interestingly enough, Utilities and Real Estate were the biggest sector gainers in Thursday’s trading.  However, this doesn’t look to be a one-day rotation.  Utilities have trounced Technology over the last week, and still look to have some further relative strength after breakouts in XLU and also relative to SPX.

Importantly, both SPX and QQQ are now nearing the “moment of truth”.  Daily closes over 9/1 peaks would temporarily postpone any correction likely until October, as structurally this ...

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