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The video in this report is only accessible to members

Trend bullish- Pullback should be buyable in SPX and QQQ early next week after the first negative week since early May

A continued decline took indices down further in Friday’s trading, marking four out of five days of weakness and the first weekly decline since early May.

Technology proved to be one of the worst performing groups of the week, outside of REITS and Energy, but failed to show sufficient damage to expect this decline is too important.

Interestingly enough, Utilities and REITS showed very weak performance, and this defensive weakness is a key “Tell” for markets that this past week’s decline was not too serious.

Healthcare bucked the tide of the defensive weakness, however, and finally began to strengthen and Equal-weighted Healthcare turned in the best performance of any of the Equal-weighted sector ETFs this past week.  This sector should be favored for outperformance into late July.

Another important “tell” regarded the shape of this decline, and hourly charts show the stair-stepping nature of this past week’s pullback.  As can be seen, a very overlapping, choppy decline played out which was far different than the rally from late May into mid-June.

Such a pullb...

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