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The video in this report is only accessible to members

Key Takeaways

  • This week’s breakdown in SPX and IWM to join QQQ keeps the near-term Equity trend down, and should result in February lows being tested
  • GOOGL and FB breaking monthly lows means it’s still early to buy these
  • Pharma ETF PPH nearing former breakout area, suggesting its likely right to buy dips
  • US vs ACWI continuing to trend higher; So, while US is weak, it’s still relatively strong

Global Equity markets continue to exhibit above-average downside volatility as this week has drawn to a close.  In the US, we’ve seen breakdowns in Russell 2000 index and SPX under April lows to join the QQQ’s recent break of support.   Overall, near-term trends remain bearish and momentum is not oversold as both SPX and NASDAQ have now logged three straight negative weeks of performance.  Importantly, key stocks like $GOOGL and $FB have just broken down to new monthly lows in Friday’s trading and are thought to both have negative influence on the indices near-term given their weightings.  Overall, it remains prudent to be defensive, keep position sizes small, and avoid trying to buy dips in Technology just yet.  Both SPX and QQQ are expected to test February lows in the coming weeks, and yields lo...

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