Equities diverge from Treasuries as SPX pushes back to record highs

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The chart in this report is only accessible to members

Short-term trends look to be “back on track” after SPX pushed back to new all-time high territory following two failed breakout attempts earlier in the week.  NASDAQ also managed to push to new monthly highs and market breadth added some conviction to this move with very positive bullish Advance/Decline data.  Overall, a continued rally would certainly go against the negative seasonality trends for late September but would make sense given ongoing bullish technical structure for US indices, positive and rising breadth and momentum, and an overall lack of ebullient sentiment.  Interestingly enough, both US Dollar and US Treasury yields look to be stabilizing and might be starting to turn higher in the weeks to come for a bounce.   Overall, without evidence of any serious technical damage, it’s difficult to turn too negative on US equity markets.  Most of the Triangle patterns for SPX, QQQ, IWM look to be slowly but surely resolving higher to join the DJIA’s breakout and that of Equal-weighted S&P 500.     

Overall, yesterday’s comments on Treasuries look to be playing out, while the Equity market weakness looks to be premature given Thursday’s rally.  Specifica...
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