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Trend bullish - Expect rally up to SPX 4550 into July expiration.  A lower than expected CPI print could help SPX surpass 4458 which would help jumpstart this move.

Overall, a “Broadening out” has been the telltale catch phrase for US equities since mid-May.

What had formerly looked like just a Technology rally has given way to relative strength in many other sectors like Industrials, Discretionary and Communication Services.

However, just in the last two weeks, there’s been evidence of Transportation stocks, and Financials starting to play Catch-up which has now been followed by a breakout in Energy.  Even Small-caps and Mid-caps have been strengthening on an absolute basis and relative to Large-Caps.

Despite Technology stalling out a bit in recent weeks, there’s been no technical confirmation of Technology peaking out.  Meanwhile, a plethora of other sectors have come to the rescue to help the US Equity rally broaden out.

Ahead of Wednesday’s (7/12) important CPI print, SPX has begun to turn back higher and finished Tuesday within a point of last Friday’s intra-day peaks.

It’s thought that a move back to new July highs is underway, but truly needs a move above 4460 for con...

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