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

US equity markets remain trending lower in the short run, but are close to near-term support which should materialize between 12/21-12/23 at marginally lower levels.  While daily momentum has not yet reached traditional oversold levels per Relative strength index (RSI), we’ve begun to see RSI show positive divergence on two-hour charts of QQQ and SPX.   Furthermore, the percentage of stocks above their 20-day moving average is nearing Single digit territory, which normally provides relief for longs.  Overall, I don’t expect markets to go down much further in December, and risk/reward for trading shorts looks sub-par with SPX not far above targets at 3725.  This might materialize at 3775-3800 before allowing for a minor bounce, and then retest into Wednesday-Friday.  However, I’m fully expecting a bounce next week into year-end, regardless if it proves temporary.  Overall, it remains important to pay close attention to AAPL and Treasuries, both which have begun to turn back lower (Yields bouncing).

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Treasury yields look to be turning higher for a bounce  

As discussed, TNX and TYX both look to be turning back higher, which could directly result in Technology underperforma...

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