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

The near-term stalling out in stocks likely results in an eventual pullback between now and August expiration for US benchmark indices, though we’ll need to see a close under 4100 to think this is getting underway.  At present, two weeks of sideways consolidation has served as a source of frustration for Bulls and Bears alike.  The real key for S&P will be a break of 8/5 lows, (SPX-4107, ES_F-4103) to have conviction that a selloff is getting underway.  Wave structure cannot completely rule out one final push higher post CPI, though this should prove short-lived and reverse course.  Key catalysts for this decline outside of the technical factors we’ve discussed in recent days involve Treasury yields starting to turn back higher along with the US Dollar.  These rallies could make Technology fall a bit further in the short run;  however, I’m expecting any decline proves short-lived and minor, followed by a further rally into late August/early September.  At present, 4100-7 is an important support zone, while resistance lies at 4200-5 on the upside.  One should look at selling strength Wednesday, while holding off on buying dips on any decline under 4100.

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Technology looks to face near-term headwinds ...

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