Technical Strategy Video:

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The video in this report is only accessible to members

Key Takeaways

  • SPX push to new all-time highs is slowly starting to be seen in other indices and Groups.  While negative divergence is present, we’ll use these levels as the “dividing lines in the Sand” QQQ-400, IWV-275.87, and SPX 4723- Above it’s right to be bullish, while below requires caution. 
  • Cryptocurrencies look to be jump-starting their own Santa Claus rallies, as BTCUSD, ETHUSD, SOLUSD, MATICUSD, AVAXUSD and many others have all jumped to new highs for the week.  Long Bias is proper for Crypto into mid-January
  • LLY, CTSH, VMC, G, and PKI are five technical standouts that look attractive for the weeks ahead

SPX’s all-time high close was not matched by similar moves by $QQQ, nor DJIA just yet, but it does look like a constructive move for SPX, and slowly but surely we’ll see if other indices can start to follow suit.  Make no mistake, having conviction in a “Santa Rally” is less about SPX, but more about seeing the broader market starting to show more strength following a damaging last six weeks of trading.  Given that DJ Transportation Avg remains >2,000 off November highs and $IWM is also lower by more than 8% since 11/8, it’s necessary to at least discuss...

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