Rotation back into Financials, Energy likely as Tech stalls

**Please note that there is no Technical Strategy Video to go along with this report.

Key Takeaways

  • Breakout in SPX proved unable to last, and late day reversal caused prices to fall while NASDAQ declined more than 1%. SPX got to within 7 points of 4750-75 resistance range. I expect a stalling out of October-Nov rally as markets enter December
  • Powell renomination a short-term positive for US Dollar as well as Treasury yields ticking up, which happened on the short-end of the curve as yield curve flattening persists
  • Financials and Energy made meaningful bullish reversals Monday that give confidence to further strength in the weeks to come

Early SPX strength got to within 7 ticks of resistance range from 4750-75 before reversing back sharply into the close. This 60-point high to low reversal could be important in suggesting this period of consolidation for markets has begun. Technology’s stalling out near resistance looks important and something to watch carefully give Tech’s outsized influence on indices and ETFs.

The video in this report is only accessible to members

Post Fed-Chair decision comments:

Today could be the start of some rotation again back into financials and Energy while Technology lags.  Charts show this move in Financials as likely following through...

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