The video in this report is only accessible to members
The video in this report is only accessible to members

US Equity markets technically look to have bottomed and are slowly progressing off early October lows.  Both US Dollar along with Treasury yields have backed off in recent days following last weekend’s attack on Israel.  The expansion in breadth and broad-based nature of many lagging sectors turning higher to break out of 1-3 month downtrends in recent days looks constructive technically, and lends support to a further October rally. 

The combination of today's hot CPI print along with the lousy 30-Year Bond Auction results caused yields to spike higher on Thursday morning, and yet again, Equities responded negatively. 

Bottom line, despite Thursday’s selloff, the rally from early October remains intact in my view and should not erase the positives from earlier this week.  However, there could be further consolidation until yields can begin to turn back down.   For those with an ultra-short, tactical timeframe, I expect this might last into early next week, with ideal support found near 4300, but difficult to rule out 4280-5.

As shown below, early morning weakness in SPX resulted in pullbacks to right near the first 38.2% Fibonacci area of the rally from early October, and ...

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