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

The upside follow-through for Equities is nearing initial time and price targets, which likely result in a stalling out/reversal as of Wednesday of this week.  Reasons for an upcoming change of trend have more to do with cycles than “overbought conditions” per se, but intra-day momentum gauges have certainly reached levels which makes this move seem stretched after 200 $SPX points gained in four days’ time.  Utilities, Discretionary and Financials continue to be sectors to overweight, while Technology on an equal-weighted basis has shown far less strength lately than big-cap weighted $XLK.  Importantly, while $SPX has broken its one-month downtrend and has rallied on above-average breadth over the last few days, Equities are nearing a key period this week which has produced changes of trend over the last five of six months into mid-month.  Thus, further rallies post Tuesday’s CPI report should constitute a time to consider hedging/selling for those who tend to be more short-term focused.  Others which have a lengthier buy and hold mantra should postpone initiating new long Equity orders this week, but would be encouraged to consider buying on any weakness into early October.

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