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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 defensive sectors like Utilities, Staples are all starting to show evidence of hitting support, and likely are close to turning higher.  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 trend reversals require a close back under 1/12/24 peaks to have even short-term concern. (SPX-4802.40)

The US rally showed some scant evidence of reversing course late day as Treasury yields began to turn higher.  Yet, prices failed to make multi-day lows and merely closed down near the lows of Wednesday’s session.  At a minimum, I believe SPX requires a close down under 4802.40 to have concern about a minor consolidation.  Minor pullbacks into February should prove short-lived and should prove buyable.

Treasury yields and the US Dollar ...

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