Technical Strategy Video:

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The video in this report is only accessible to members

Key Takeaways

  • Thursday’s abrupt reversal doesn’t cancel the rally but does serve as a warning sign. Key will be SPX 4451 and QQQ-356.19, NDX- 14452
  • Treasury weakness should persist a bit longer, with TNX targets at 2.25%
  • Cannabis stocks look to be bottoming given the move to multi-week highs and a big uptick in momentum. 

St. Louis Fed Chair Bullard’s ultra-hawkish tone set the stage for a volatile afternoon session in US Equities, US Treasuries and the Dollar which need to be watched carefully into next week.  The Thursday afternoon break of 4512 in S&P Futures (4529.94-SPX Cash) causes some minor concern regarding the structure of this rally, yet it will depend on a break of last week’s lows (SPX 4451, QQQ-356.19, NDX 14452) before the trend would shift to bearish.  Near-term, this dip should be bought until/unless SPX 4451 is broken, which would cause some downward volatility into late February before a March rally.  At present, insufficient damage has been done to warrant concern technically, but the risk levels are easily identifiable for this trend.

The video in this report is only accessible to members

Treasury weakness likely reaches downside targets into March before reversal  

Treasur...

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