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Recent stalling out in indices hasn’t shown any real signs of turning down sufficiently to suggest US Equities are rolling over into this week’s economic data.  Small high to low ranges on light volume make perfect sense given lack of large positioning ahead of CPI/PPI this week.  Breakouts above SPX-4200, DJIA-34400 and NASDAQ Comp-12,228 would be quite bullish post FOMC if this occurs, and could likely lead to a short squeeze, given bearish positioning.

Technology has shown only scant weakness over the last few trading days, but this has been largely due to Large-Cap Technology stocks showing mild underperformance vs. thinking the broader Technology space is rolling over.  Equal-weighted Technology is doing better than Technology, but Tech is the only major sector down on a rolling 5-day basis (-0.67% for $RYT vs. -1.57% for $XLK).

Technology underperformance in recent days has caused the broader market to look weaker than its actually been.  Sectors like Financials, Discretionary, Energy, Materials were all up nearly 1% in Equal-weighted terms in trading Tuesday.  Thus, a -0.9% decline in Technology camouflaged the market a bit, making it appear worse than it actually was.

Financials, to their credit,...

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