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

The rally certainly started to show some evidence of “Wear-and-Tear” on Thursday, though no evidence yet again of any meaningful trend reversal.  A couple pertinent points:  Yields have started to move higher and US 10-Year Yields have broken downtrends since June.  This should be a concern to short-term Bulls.  Second, Technology finished flat on the day and seems exhausted after reaching overbought levels with NASDAQ negative on the day.  Overall, I remain defensive in the near-term and with SPX still under 4250, am expecting a short-term trend reversal starting in the days to come.  QQQ as shown below, looks to be stalling right at its eight-month downtrend, and might fail to break out on a weekly close.  My own thinking is that markets are beginning a short-term correction which should prove brief and buyable for strength into September.  At present, it’s best to keep a close eye on Treasury yields which are moving up.

The video in this report is only accessible to members

Treasury yield breakout looks to be the key catalyst  

While I’ve discussed this now for a few days’ time, it remains the most important short-term catalyst for a reversal in the stock market. 

Yields and stocks have been quite negati...

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