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The video in this report is only accessible to members

Monday kicked off with a broad rally which largely proved to be an exact opposite move of what markets have engineered over the last few weeks.   Financials, Energy, Industrials and Materials were all quite strong, while Technology was largely absent from the rally until the last couple hours. 

Similar to last week’s gains, seeing lopsided participation out of the Cyclicals while Tech is largely absent does not equate to the market being vulnerable.  Conversely, if late 2021 taught us anything, it’s that Technology is perfectly capable of carrying the load while other sectors aren’t participating.  Bottom line, what’s truly important to have more confidence about the longevity of this bounce is to see many of the cyclicals fully recoup their weakness from early February.

At a close of 3951.56, SPX is close to joining NASDAQ in being positive for the month of March at a time when sentiment has grown the most pessimistic in nearly six months.  DJIA and SPX have largely ground sideways over the last couple weeks, while Technology has helped the NASDAQ strengthen enough to recoup more than 50% of the drawdown since early February.

Overall, a push above last week’s SPX highs at 3964.46 looks likely...

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