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The video in this report is only accessible to members

US Equity markets look to have bottomed on 10/3 and are likely to progress off October lows in a two-steps forward, one step backwards type process.  Both US Dollar along with Treasury yields are likely to show further deterioration in October, but also could show some backing and filling in the near-term into next week.  The expansion in breadth and broad-based nature of many lagging sectors coupled with bearish sentiment remain reasons to be constructive for October.  Furthermore, QQQ relative strength as the new “safe” sector combined with bullish seasonal trends should make October more bullish than November.    

Overall, nothing has changed in the short-term technical outlook despite the late week reversal.  This directly followed S&P futures having climbed up above 4400 while QQQ stalled near strong resistance just under $374.

Interestingly enough but not surprising, S&P’s early reversal following Friday morning gains proved to directly coincide with $TNX finding initial support near 4.59% and turning back higher.  As many remember from Thursday’s session, the area near 4.70% proved to be resistance for yields.

Overall, while a minor bounce attempt ov...

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