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Technically the snapback in multiple sectors in the last month is certainly a positive heading into 2024.   Unfortunately, US equities show RSI readings at elevated levels and the risk/reward scenario certainly hasn’t improved after a ~13% rally in the last seven weeks. 

US Equities and Treasuries have largely extended further than what was believed possible a few weeks ago and DJIA has now reached new all-time highs while NASDAQ 100 index and QQQ are right below November 2021 peaks.  Equal-weighted SPX is also right at July 2023 peaks while six of 11 sectors are testing their intermediate-term downtrends from 2021. 

Overall, despite my 2023 targets having been achieved, my short-term analysis has been too defensive in recent weeks given the combination of the following:

Cycle composites have shown the possibility of weakness into late December Lackluster momentum and breadth readings have been present since mid-November. DeMark readings on daily charts were premature to act upon given no weekly Setups Slowdown in the growth trade resulted in Technology failing to keep up with sectors like Finan...

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