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The video in this report is only accessible to members

Similar to yesterday’s comments, I believe that the recent pullback for US Stocks is nearly complete.  I had emphasized 3900-3930, but specifically 3925-3930 as having importance, and SPX hit that level Thursday and rallied well off early lows. 

Price formed a technical “bullish engulfing pattern” on SPX and NDX, which normally can be helpful towards suggesting a reversal in trend following a pullback.  DJIA, meanwhile rallied to hold prior lows from December 2022 which also looks important.

Yields however, failed to cooperate in reinforcing this stock rally. 30-year yields spiked over 4% to join the 2’s, 5’s and 10-year yields over 4% in an apparent breakout.  While the late day buying in Treasuries resulted in yields pulling back somewhat, this still looks to be an important move in yields for Thursday.

For those interested, SPX 3920-30 was specifically based on the following:   First, the October 13, 2022-Febraury 2, 2023 rally spanned 112 calendar days and showed a 38.2 Fibonacci retracement level right near Thursday’s 3925 low.  Second, this level also lined up with a 61.8% price and time-based retracement of the December 22,2022-February 2, 2023 rally.

Thus, two different areas of Fibo...

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