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The video in this report is only accessible to members

Thursday’s snapback gains seemed to be a mirror opposite of Wednesday’s trading, but look to have decidedly broken the near-term 6-7 day period of consolidation to the upside. Overall, the act of having exceeded 4133 does not change the near-term trend too dramatically, and SPX 4200 remains the most important area to watch carefully in the days ahead.

Healthcare, Technology, Communication Services, and Discretionary all rose more than 1%, while defensive sectors like REITS and Utilities lost ground. Importantly, the minor consolidation in Technology cannot be officially called “over” following Thursday’s rise.  Areas like Semiconductors have lagged lately and remain in need of some pattern improvement.

Market breadth was positive on Thursday, albeit not extraordinarily so, at just over 2/1 positive.  However, seeing Technology recover from recent weakness looked to be a minor benefit to stock indices. 

The big developments on Thursday centered on the breakout in the Euro and Pound Sterling to new monthly highs, along with a breakout in the price of Copper.  These all look likely to trend higher in the weeks to come along with continued gains in precious metals.

Three possible negatives are impor...

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