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The video in this report is only accessible to members

Key Takeaways

  • Monday’s churning still leaves markets in bottoming process as the month of February comes to a close.  While near-term price action remains choppy, rallies are expected
  • Energy has shown some change of character as Equities have begun to stabilize with Exploration and Production stocks starting to outperform.  XOP should be favored.
  • Aerospace & Defense followed through sharply Monday with many in the group like GD, RTX, NOC, LMT making new all-time high closes on monthly charts.

US Equities closed out the month of February down a bit more than 8% for SPX in the months of January and February combined, but have shown increasing levels of stabilization that suggest that a larger snapback rally for the month of March should be slowly getting underway.  Despite ongoing downtrends for SPX on a three-week and a two-month basis, gradual stabilization in groups like Technology and Industrials is encouraging.  Near-term, SPX 120-minute charts show the sharp rally from early this month finding initial resistance near its downtrend, found at 4385.  Above would argue for a push up to 4460, or a 50% retracement of the Jan-Feb decline. Overall, this remains a two-step forward one step back...

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