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US Equity indices have now weakened for the third straight session as Treasury yields have pressed higher;  At present, yields are nearing a “Do-or-Die” area of resistance, while Stocks are nearing a similar level of support.  Breakouts in yields, however, could postpone a stock market low.

Given Technology’s resilience in September, along with a pick-up in bearish sentiment, it looks right to expect Equities can bottom into the next short-term cycle period which starts on 9/9 into 9/13.  Thus, a window for a market bottom might materialize into next week.

Overall, despite some minor weakness for SPX and QQQ since late July, US indices have largely successfully managed to absorb one of the largest periods of Treasury issuance in this short of a period in years. 

Momentum and breadth have certainly faltered in the last five weeks while seasonality remains a chief concern for September.  However, barring the break of the minor uptrend from mid-August lows, I believe it’s still right to bet on higher prices and that recent weakness will prove to be short-term consolidation only, not the start of a major downturn.

Key support should materialize near the 50-62% retracement ratios o...

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