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SPX and QQQ at new all-time high territory has not yet been followed by similar movement from Russell 3k, Value Line Average, and DJ Transportation Avg, and this divergence will be important to concentrate on in the weeks ahead.  Technology remains an outperformer after its recent breakout.  Meanwhile some minor evidence of defensive outperformance began on Tuesday, and this also should be watched carefully.  Breadth has been waning in recent weeks while US Dollar and Treasury yields have begun to press higher which likely could bring about an upcoming consolidation for US Equities.  At present, trends are bullish and no evidence of trend reversal has occurred.  

Defensive groups like Consumer Staples and Telecom have begun to show some near-term outperformance on Tuesday, but this doesn’t appear like an isolated event.  Evidence of Equal-weighted Discretionary peaking out vs. Equal-weighted Staples began in mid-December and has persisted over the last month.

Meanwhile, Technology managed to roar back in trading on Tuesday after early losses to close higher by +0.40% ($XLK). Thus, despite a lackluster day for market breadth where more NYSE issues were lower than higher, US Equit...

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