Key Takeaways

  • Thursday’s sharp rally caused many to expect (yet again) that lows are in; however,  breakouts above SPX 4114 and QQQ-306.56 are minimum requirements.
  • Stock/bond correlation still intact as both stocks and Treasuries rallied this week.
  • Cryptocurrencies rebounded Thursday, following the rally in risk assets.
The video in this report is only accessible to members
The video in this report is only accessible to members
The S&P bounce might seem to be reason for hope for many investors; however, yet again, this has taken on characteristics of a counter-trend move and hasn’t exceeded areas of importance to expect meaningful lows are in place.  As has been discussed, cycles point to bottoms in June, which also aligns with many weekly DeMark counts.  Furthermore, the Elliott-wave structure of this bounce looks corrective (and not something which should extend past Friday). While the broad-based rally on Thursday is impressive, with groups like Financials and Discretionary making strong recoveries, it remains a concern for Bulls that Defensive groups have also turned in above-average performance this week. Overall, movement above SPX 4114 and QQQ 306.56 is necessary to give this rally some attention.  My expectations are that trading lows are certainly close.  However, a move back to new lows is still needed to ...

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