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

No change-Technically, our recent consolidation in US risk assets likely marks an attractive opportunity following the huge run-up into late December.  SPX has managed to alleviate near-term overbought conditions while weekly momentum and breadth remain bullish.  Trends in both US Dollar and Treasury yields remain lower despite recent bounce attempts, and an upcoming pullback in yields should coincide with Equities turning back up to test and exceed late 2023 highs.  Bottom line, this New Year’s hangover looks nearly complete.

Friday’s Jobs report failed to help Equities turn higher as expected into end of week, as yields teeter-tottered before finishing the session higher by 3 basis points ($TNX).  While Yields look to be nearing resistance on this bounce, the lack of any material downturn has kept pressure on Equities which remain tightly and positively correlated to the Treasury market.

Financials and Discretionary outperformed sharply on Friday and helped to buoy the market despite another day of underperformance from Technology.  AAPL, in particular, has lagged badly since the start of the year and has been a headwind for Technology strength.  (I’ll discuss my thoughts on AA...

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