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The video in this report is only accessible to members

Equities continue to show signs of minor consolidation of early January gains, and while bounces could happen into Friday/Monday, additional pullbacks look to be possible into next week.  This would line up with cyclical projections for a possible low in late January. 

However, the degree to which US Dollar and Yields have broken down technically argues against an immediate reversal back higher in the near-term and should continue to benefit Emerging markets and commodities.

Furthermore, the broader breadth improvement along with weakness in Defensive sectors likely translates into a buying opportunity for stocks into late January.  This also would gel with the bullish seasonal tendencies of 1st quarter performance during Pre-election years and would directly go against the consensus, which calls for an ugly first half. 

As discussed, TD Sequential and TD Combo weekly 13 exhaustion signals are now slowly but surely appearing on quite a few of the more important Technology and Discretionary stocks that make up big percentages in the indices and many popular ETF’s.  $QQQ confirmed weekly TD Sequential 13 countdowns in recent weeks, along with $AAPL and $AMZN, while $MSFT and $GOOGL are close in this regard.


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