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The video in this report is only accessible to members

The near-term pullback in S&P to kick off the last couple days of January trading doesn’t appear too serious, and it’s still likely that SPX should finish with strong gains for this month.  As of 1/30/23 close, SPX remains higher by more than 4.5% higher, and five sectors are outperforming the market year-to-date with one day remaining: Communication Services, consumer Discretionary, REITS, Technology and Materials.

While hourly momentum (Relative strength index (RSI) entered short-term overbought conditions as of last Friday, and breadth did finish negatively on Monday to the tune of 3/1 negative, pullbacks won’t do much damage barring a break under 3949, while the area under that level lies at 3885. 

Uptrends remain very much in place from late December 2022, and daily momentum gauges continue to show a strongly positive slope.

Outside of Equities, both Treasury yields and the US Dollar have shown some minor stabilization of late. Yet, trends on both are negative and minor bounces should still be an opportunity to bet on lower prices for both. 

Cycle composites show a bottoming out in late January and show upward sloping prices into mid-February and ultimately into mid-March, directly coinciding with si...

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