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

  • Minor stabilization on Friday doesn’t take away from the short-term negative case given momentum, structural issues & weakness expected the last two weeks before a low
  • Treasury yields and the US Dollar both strengthened on Friday; Yields in particular likely push back to new yearly highs (TNX) and could make Friday’s weakness in Financials buyable into February
  • Energy intermediate-term bullish, but near-term stretched as WTI nears Oct 2021 peaks

Friday’s recovery looks to have happened directly following an Elliott five-wave decline from mid-Week.  Thus, while many might feel emboldened that markets were able to stabilize, it’s likely that 4665-88 could contain any bounce before turning back lower to test this past week’s lows.   My list of concerns is highlighted on the following page, but it’s worth pointing out that momentum, structure, and cycles are three factors that could result in a difficult final two weeks of January before any relief.   Bottom line, a defensive stance is preferred for now, with Staples, Utilities, REITS and Healthcare likely continuing to outperform Technology near-term.

The video in this report is only accessible to members
Key Technical reason...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Want to receive Regular Market Updates to your Inbox?

I am your default error :)