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

The Equity decline over the last couple weeks has directly coincided with both US Dollar and TNX pushing higher.  This looks close to reversing now as Treasury yields approached former peaks today and made a fairly prominent about-face. 

Importantly, very little overall damage has taken place with trends in SPX and NASDAQ, and both are largely near areas hit in early February and remain trending up within uptrends from last October.

Interestingly enough, the narrative shift all of a sudden in markets this week seemed important from a sentiment perspective, as some of the near-term gauges had become a bit frothy.  Furthermore, this shift from FOMC hiking 25 bps to now contemplating 50 bps should go a long ways towards eliminating some of the shorter-term bullish sentiment. 

Any near-term pullback in Equities likely should help short-term sentiment to turn back to neutral or bearish which would be helpful for risk assets as the larger rally starts to kick in again, potentially next week. 

It’s important to reiterate that short-term Elliott-wave structure remains quite positive for SPX.  Hourly charts show a very pronounced three-wave decline from February 2nd into February 10th, which suggests that t...

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