US outperformance over Europe looks to continue

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Equity and Treasury bounce looks encouraging, and it’s likely that SPX joins QQQ in breaking out of its downtrend post NVDA earnings blowout.  Given Wednesday’s Treasury rally, it appears like the short-term weakness in Equities is nearing its end as August nears its end.   

NVDA’s larger than expected $16b guidance number vs. 12.5% expected for Q3 seems to suggest that AI demand remains insatiable.  If After-market activity in NVDA remains intact heading into Thursday’s 8/24 session ($NVDA up 8% after-hours following earnings). it’s thought that this should further help Technology’s rally continue at a time when it’s much needed for US Equities.

Technology has rebounded sharply this week and I believe strong leadership out of large-cap Technology should further help this sector further its near-term momentum.  Given Technology’s 27% weighting in SPX, this is very much seen as a short-term positive for US Equity markets.

US Treasury yields rolled over sharply on the heels of weaker than expected economic data (PMI) on Wednesday.  This looks to be the start of a gradual rolling over in interest rates.

Sector leadership favored Technology and Communication Servi...
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