Energy is an Overweight for 2023, but important to differentiate Array ( [cookie] => 4d9114-92b6e8-c2970f-0a38bc-b641a8 [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 1 [max_usage_crypto] => 2 [lock] => 1 [message] => [error] => [active_member] => 0 [subscriber] => 0 [role] => [visitor_id] => 176184 [user_id] => [reason] => [method] => ) 1 and can accesss
Short-term trends remain bullish from late December lows as part of the larger ongoing downtrend from last January. Thursday’s CPI failed to shake prices lower, but Treasury yields did manage to stabilize, and it’s my thought technically that both $DXY and $TNX will show evidence of bouncing starting next week.
Until/unless longer term downtrends start to give way on SPX, QQQ, or many of the former leading sub-industry groups which are all up near meaningful trendline resistance, it’s going to be difficult to just point targets higher and say that markets are breaking out. For those short-term oriented, it’s essential that prices turn back down to multi-day lows to think a reversal has taken place.
Furthermore, the next few days should give some instance of defensive outperformance and/or negative market breadth to have advance warning of a meaningful trend reversal. At present, I continue to view US Equity indices to have traded up to areas where prices will need to prove themselves by breaking out if this cyclical downtrend as well as cyclical projections lower are going to be proven wrong.


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