Quick reversal suggests a Short-term market peak is likely in place

US Equity markets likely could be peaking out and Thursday might have officially served as the technical catalyst for confirmation.  US and European sovereign yields along with US Dollar index and Yen look to strengthen short-term before turning back lower in August 4350-4400 looks possible for SPX on weakness into mid-August before rally continues

Don’t look now, but Thursday’s rapid trend reversal looks to potentially be the technical catalyst for the warning signs I have discussed over the last week.  S&P, DJIA and NASDAQ all pulled back sharply from early day highs and SPX, DJIA, Russell 2000 all made bearish engulfing patterns in sweeping under lows of the last few days in Thursday’s trading.

DJIA came very close to achieving the unthinkable in recording the longest consecutive rally on record, spanning 14 straight days.   Despite Thursday’s reversal, DJIA has still achieved an impressive ~2000 point rally, just since mid-July, which was specifically driven by the breakout of $34588, an important technical catalyst.  Even at current levels, DJIA is only roughly 2% from all-time weekly closing highs.

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