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Trend bullish- Expect rally up to SPX 4515-25 initially in the short run,  while QQQ likely to reach 375-6 before possible stalling out;  At present, near-term trends remain bullish

Wednesday’s below expected Core CPI reading proved to be a great technical catalyst for Treasuries to turn back higher sharply.   2-Year yields cracked meaningful uptrends, while 10’s 30’s and 5’s (Belly of the curve) saw rates also plunge following Wednesday’s report.

This drove US Equity markets up sharply at a time when many were questioning whether June highs could be exceeded.  Large-cap Technology’s (Tech) snapback was quite constructive for QQQ in particular which outperformed SPX by around 50 basis points.

Materials and Utilities led in trading, and the latter’s strength was somewhat surprising given the current risk-on trend extending further.   A shift to defensive sectors remains early to call, but will be something which could take on importance if this continues into July expiration.

At present, it’s seen as a positive that the rally in Industrials and Discretionary have now been joined by Financials, Materials and Energy.  Tech’s recent stalling out over t...

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