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The video in this report is only accessible to members

US Equity markets likely have begun their trek back to test July 2023 highs.  Both US Dollar along with Treasury yields are likely to show further deterioration in October, but also could show some backing and filling in the near-term this week.  The expansion in breadth has been a slow process to a market that’s been rather narrow for the last month.  However, the recent improvement in many former lagging sectors coupled with bearish sentiment remain reasons to be constructive for the back half of October. 

The resilience in sector strength out of Financials along with Small-caps, Mid-Caps and Transportation Stocks is thought to be bullish for a market that appeared largely unchanged based on SPX and QQQ’s closing price.

Despite US 10-Year Yields spiking back to near 2023 highs along with 2’s, 5’s and 30-year Treasury yields, both 10 and 30-year yields failed to exceed intra-day/week highs from early October.

Specifically with regards to SPX and QQQ, the patterns have improved over the last week, and while yields pressing higher was formerly thought to be bearish for US Equities, stock indices have been able to press higher despite this move in rising yields.

In Tuesday’s tradin...

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