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The video in this report is only accessible to members

The recent drawdown in US Equities since February looks nearly complete, and I expect the area at 3900-3930 to contain this decline into end of week before a March rally gets underway.

Technology’s strength has proven unwavering, with superb relative strength in the month of February, outperforming all other sectors.

Defensive sectors have been slowly but surely weakening, and breakdowns in Utilities on Tuesday (2/28) have now been followed by Real Estate ($EWRE) which violated a key uptrend line during Wednesday’s (3/1) session.

Cyclical lows should be in place to kick off the month of March, and I anticipate rallies back higher over the next 1-2 weeks.  While the next couple weeks might prove choppy until a definitive top is in place for Treasury yields, this doesn’t look too far off.

As shown below, prices have moved lower from February peaks in very much a three-wave decline.  This is significant as it shows this decline as very likely being a “corrective” consolidation pattern which should lead to movement back to new highs into March and/or April.

Cyclical composites show the next couple months to be choppy.  Moreover, it’s expected that rallies should occur into 3/7 and then possibly 3/15....

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