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The video in this report is only accessible to members

The near-term bounce ahead of the all-important CPI data looks to be nearing a critical area Monday which will need to be exceeded before thinking Equity markets are in the clear.  Strong resistance for SPX lies at 4176, while at 4188 for S&P futures.

Treasury yields have rallied back to near the highs of their recent trading ranges with FVX and TNX climbing to levels just shy of December 2022 peaks.  While downtrends in yields were broken from last October’s peak, it’s thought that a turn back lower is likely in the near future.

Sector-wise, Large-Cap Technology has been a very good source of strength lately and Monday’s outperformance out of Consumer Discretionary, Communication Services along with Financials are largely in line with the early year 2023 performance.

At present, the technical structure and momentum have waned a bit from early February given the recent weakness, and it’s still hard to rule out more weakness.  However, cycles and trends overall still look positive into mid-March-April which should allow any pullback to likely be complete by February expiration before a strong rally back to highs.

Hourly SPX charts below highlight the two intersecting trendlines which could give some resi...

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