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

The near-term pattern continues to show choppiness, and SPX has not broken out, nor broken down in a meaningful way that would suggest any sort of clarity in near-term direction.  If anything, this sideways action in Equity indices in the wake of Treasury yields pressing higher over the last six of eight trading days seems pretty resilient, to say the least.

While short-term breadth gauges have softened a bit over the last week with the Equity stallout, SPX still has nearly 70% of all issues above their respective 200-day moving averages.

Semiconductors remain a very strong part of the US Equity market in the near-term and the best part of Technology.  Meanwhile, there hasn’t been any real sign of defensive outperformance.  Technology outperformed Utilities on Tuesday, and both Staples and REITS lagged sharply behind all other sectors.

As mentioned, it will be important for SPX to exceed 4176 to think an imminent push to test and exceed 4250 is underway.  Conversely, undercutting last Friday’s lows just above 4060 would result in consolidation into next week before rallies can get back underway.

As discussed later in this report, February tends to have a far better track record in pre-election years than n...

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