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

Key Takeaways

  • US Equity rally extending and should reach February highs before stalling out
  • Both Industrials & Materials seem to be kicking into gear given the commodity boom
  • Treasury yields look to be making an important reversal, which bodes well for yields to climb into March FOMC meeting.  Financials should outperform on this move.

Wednesday’s gains to multi-day highs resulted in SPX finishing at the highest levels since mid-February.  Trends and momentum have improved, and further upside looks likely, which might reach early February highs before any sort of stalling out.  Sector-wise, Industrials and Materials seem to be kicking into gear given the commodity acceleration lately, and Treasury yields made a big reversal Wednesday, which has bullish implications for yields in the weeks ahead.  Overall, stock trends are short-term bullish, as part of ongoing two-month downtrends.  SPX has short-term upside targets near 4485 initially, with leading to Fibonacci retracement targets up near 4542-8.  This area would also allow for wave equality to the two bounces off February lows, representing an area of initial resistance which should be watched carefully.

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