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US Equity indices like SPX and NASDAQ are now nearing August lows, which is quite important technically speaking just as Treasury yields have broken out to new 15+ year highs.  I expect that SPX and QQQ might not break August lows right away on a weekly close heading into the Yom Kippur holiday.  However, it’s imperative that Treasury yields and US Dollar begin to roll over quickly, as further gains could still pressure stock indices a bit more into early October before a bottom . 

Overall, US risk markets continue to operate in a “Bad News is Good News” mentality with regards to the US Economy.  The FOMC’s removal of half the rate cuts which had been priced in for 2024 clearly seems to be sending a message that the economy remains stronger than many feel it should be given the 525 bps of rate hikes in less than two-years’ time.

Without delving into the economy, it’s simply important to take note that a rapidly rising US Dollar and Treasury yields have served to be a negative for US stocks since July.

While I believe that Equities and Treasuries should both be close to trying to bottom out in the near future (Rates close to peaking), it’s going to be necessary (in all likelihood...

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