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The video in this report is only accessible to members

Markets have entered a window for potential short-term trend change, but do not expect much selling until August.  Near-term, an SPX-4500-4620 range might hold into last couple days of July before weakening down to 4350-4400 into mid-August before rally continues

While US Equity markets showed roller-coaster type volatility following the Fed’s rate hike to new 22-year highs, Powell’s language sent a clear message that June’s pause should not be interpreted as the end of the cycle or the start of a “one-month on, one-month off” type policy.

Fed swaps right now are pricing in a 50% chance of another rate hike, and these odds very well could rise if rapidly rising gasoline prices cause any kind of rise in inflation.

Technically, the key takeaways involved the strength in Financials following FOMC’s assertion that the Banking system remains “sound and resilient”(Powell)  Stocks like $ZION, $KEY, $CMA, and $CB all rose more than 5% in Wednesday’s session.

However, it was the strength of the large-cap Industrials that warrants discussion, as UNP jumped up 10% Wednesday, while $BA and $ODFL both rose more than 6%.  (Boeing actually broke out of its multi-month base)  Meanwhi...

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