Technical Strategy Video:

The video in this report is only accessible to members
The video in this report is only accessible to members

Key Takeaways

  • Trends and momentum have shown some minor deterioration lately, and could experience further weakness in the next 1-2 weeks, despite the bullish seasonality
  • Breadth and momentum have waned lately as Small-caps have pulled back, and Software, Media, Telecom, Tobacco, Entertainment have been difficult areas of late
  • US Dollar index and US Treasury yields are still pointed higher near-term, though further gains are expected to prove not as robust as recently

Minor weakness in SPX really has done little to no real damage thus far, despite how ugly this has felt for some in recent weeks. US equity markets do still look to have further consolidation ahead though in the weeks to come, and it’s expected SPX can reach 4566 near the 38.2% Fibonacci retracement of its October rally at a minimum ahead of a further push back to highs.

The video in this report is only accessible to members

Technical reasons why US equities have struggled on a broad-based level, despite SPX returns

Traditional technical momentum indicators like MACD are negatively sloped while breadth has contracted sharply in the last couple weeks following a 10% rally since early October.

Elliott-wave structure seems complete from t...

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