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The video in this report is only accessible to members

Trend bullish - Despite stretched momentum, long positions remain correct; Pullbacks from near-term overbought levels next week likely prove minor before gains into late June.

SPX has now risen for six straight days, which has occurred less than 10 times in the last five years.  While our choppiness from March-May created an environment that makes many rush to sell into breakouts, this doesn’t seem like the correct thing to do technically.

Short-term overbought conditions during a parabolic move are far different than an overbought state caused by a rapid move within a consolidation, and this is an important distinction.

Many of the statisticians on Financial Twitter (FinTwit) have discussed how trading “X” % above the 200-day moving average makes markets overbought and higher risk to buy. I typically refrain from “blanket statistical type data” as it fails to take into account cycles, sentiment, DeMark exhaustion, not to mention market structure.

In this case, while $QQQ and SPX are certainly overbought, there hasn’t been any technical reason to sell regarding trend failure, which is the #1 methodology to embrace regarding managing signs of peaking out. 

However, when combining cycle...

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