Key Takeaways

  • SPX about-face has taken prices to right above key intermediate-term support  
  • FAANG stocks like AMZN, NFLX, MSFT, AAPL have begun to outperform
  • Growth has held up over May lows vs. Value and has shown better relative strength  
The video in this report is only accessible to members
The video in this report is only accessible to members
The immediate about-face into Thursday has now brought prices down to within striking distance of very prominent technical targets in price for SPX, QQQ and DJIA.  Meanwhile, many time-related indicators suggest markets should be growing very close to trading lows, as early as next week.  Evidence of bearishness turning to capitulation has been growing, and I’m confident that markets are nearing a bottoming process which should be in place by the end of June.  Cycles, counter-trend exhaustion tools, and very bearish sentiment are all coming together, suggesting markets can make a low in the near future, despite evidence of downward earnings revisions starting to just begin to ramp up.  Overall, while my base case target of 3815 failed to hold this past week, there exists even stronger support near the 50% retracement of the 3/20-1/22 rally, which intersects 3505 and lies right near former February 2020 peaks.  Bottom line, prices look to be 3-5% from meaningful support.&...

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