After the better than expected employment report out Friday, there are key index levels to focus on. Investors should continue to focus on the more important technical event developing within equity markets, the rotation toward oversold/bottoming cyclicals.

1) Market Key Index Levels: Friday the SPX was pushing above short-term resistance at the March 4 bounce highs of 3130. Next resistance is at 3259, 3328 then 3394. Support levels are 3100, 3006, 2934.

What would suggest the rally is slowing? Short-term momentum indicators remain positive but a 1.48% decline by the SPX would be needed to suggest the rally is decelerating. My expectation is that any pullback will likely be shallow, short-lived and an opportunity to continue building equity exposure, given the improving longer-term and intermediate-term trend and cycle backdrop currently in place. For some stock names, please see pages 3-4.

2) Style rotation – The intermediate-term trend of Growth vs Value has been well advanced above its 3-year trend for many weeks but is now showing evidence of mean reverting. Nevertheless, there is insufficient technical evidence at this point to signal this move is a much longer-term reversal. Simply, catching up to the 40-week sma and/or linear uptrend will meaningfully impac...

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