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The video in this report is only accessible to members

Similar to Tuesday’s mild “down day,” Wednesday’s pullback failed to show sufficient deterioration to expect much follow-through just yet.

The key driver of this rally, Technology, has not given much of an indication of topping, and key index constituents like $AAPL, and $MSFT remain trending higher and should press to new weekly highs into next week.

However, in a potential mid-to-late month advance warning sign of possible weakness, Defensive trading has certainly begun to dominate performance in recent days.  The Equal-weighted Utilities ETF, $RYU, has broken out of its recent range, and Pharmaceutical stocks have also “been on a tear.”

Meanwhile, Treasury yield and the US Dollar remain trending down sharply.  The US Dollar index ($DXY) has little to no real support until February 2023 lows near 100.82, while $TNX likely pulls back to 3.15%, or even 3.00% before much support materializes.

Former cycle composite charts pinpointed late April as being the most likely time for both Dollar and Yields to attempt to bottom.  Rallies into May could be a possible catalyst as to “why” stock indices might selloff.  At present, there isn’t much evidence to support the view that it’s starting now.


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