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

The near-term rally continues to press higher, but likely will find some short-term resistance Friday and/or Monday where a minor consolidation gets underway.  Short-term evidence of upside exhaustion is now present on $SPX, $SPY, $QQQ charts based on DeMark indicators along with minor cyclical peaks which signal a short-term change of trend Friday.   (Stock prices of $AAPL, $AMZN and $GOOGL were lower in post market trading Thursday, though its difficult to make much of trading ahead of the news conferences and in after market trading only).

However, given the strong breakouts seen in Dow Jones Transports and Semiconductors lately, along with outsized gains in Equal-weighted US Equity benchmarks and ETF’s this past week, it looks likely that pullbacks should prove temporary and equate to buying opportunities.

As discussed early in the week, given the degree of erosion in the US Dollar and $TNX this past week, pullbacks are likely to prove short-lived.  All 11 Equal-weighted Sector ETF’s are officially above their respective 200-day moving averages (m.a.).  Moreover, this translates into more than 70% of all SPX names being above their 200-day m.a.

Sentiment continues to be a driver of “why” markets ...

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