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

The ability of SPX and NASDAQ to close up near its highs of the week is certainly thought to be a positive, not a negative as prices officially broke out of their long-term downtrends on a weekly basis for the first time since the market top.

Importantly, this rally certainly seems like a lot more than just short-covering.  Sectors like Technology have continued to gain ground over the last few weeks and Tech is now the third best performing sector on the year, nearly doubling SPX’s performance.

Upside targets could materialize near 4147 into next week’s FOMC.   Yet, the technical structure has improved, and the wave structure seems to indicate that any weakness likely prove temporary until potentially mid-February.

Most of the mean reversion plays of sectors from worst to best are certainly getting stretched in the near-term.  Furthermore, it’s doubtful stocks within the casinos or Airlines area of Discretionary will be able to continue lifting uninterrupted. 

However, at present, most of the “risk-on” sectors are working well.  Meanwhile, the Defensives like Utilities and Consumer Staples have continued to underperform and Pharmaceutical stocks have joined in this weakness in the short ru...

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