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

The minor consolidation Thursday might not be complete and still looks likely to give Bulls some opportunity to buy dips for those who didn’t participate in early week strength.  However, in the bigger picture, rallies back up to test 3980-4050 look likely into October expiration, and pullbacks should be used to add to trading longs.  Overall, trends remain down, but near-term momentum and breadth have turned up with price early in the week.  This technical improvement is likely to lead further to the upside at a time when very few seem properly positioned.  Thursday’s churning in SPX directly coincided with Treasury yields turning back higher.  This might last another couple days, but rates are close to turning down, and expect Treasury yields to weaken into late October.  This should coincide with an Equity bounce not dissimilar from what happened early in the week.  While a move back above 4050 should be necessary to have great hope on SPX extending gains materially, a long bias still looks correct.

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Energy continues to strengthen and should be favored

Energy’s best week in the last seven months directly coincided with WTI Crude oil rallying sharply this week.  Furthe...

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