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The 2nd quarter got kicked off with some minor stalling out in many sectors, including Technology while both Energy and Healthcare surged.  Market breath finished flat, largely given Technology’s weakness but no meaningful weakness is expected out of Tech.

Near-term momentum and breadth continue to press higher and have not yet reached overbought levels.  Technology in particular should likely press higher into April 11-12 which represents the first time-based area of possible confluence for a change in trend in April.

Technical structure shows prices just below the upper border of a meaningful triangle formation which has been building since last August peaks, with a very symmetrical pattern of lower highs and higher lows.  This area might offer some near-term resistance to this rally.  However, any move above early February peaks at SPX-4195.44 would turn the structure much more positive, arguing for a continued rally up to test last August’s peaks just above 4300.

The Energy strength along with Healthcare bounce looks much needed at a time when the US Equity rally had been largely technology dominated.  It’s thought technically that widespread bearishness in Technology given possible future earnings...

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