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The video in this report is only accessible to members

Divergence between the top performing stocks within Technology and the broader market grew ever more extreme this past week.  However, this doesn’t necessarily imply a large selloff is imminent.  A broadening out in performance can also happen to allow sectors to play catchup to recent large-cap Technology performance, and this seems to have started with Healthcare and Financials in recent weeks.  Near-term, some negative breadth and momentum divergences likely could prove problematic in mid-February.  Yet, there’s been no evidence of any price weakness in the larger indices yet to warrant concern just yet.  As discussed a few days ago, the extent of the decoupling of Treasuries and Equities looks to be continuing.  Overall, keeping a close eye on market internals will continue to be important in the seasonally difficult month of February.

Friday proved to be one of those rare occasions where market breadth finished negative despite SPX and QQQ rallying (yet again) back to record highs, thanks to gains of more than 20% out of $META.   This represents the 4th straight week of gains for SPX.

Nasdaq finished Friday up +1.69% and $SPX managed to log gains by more than +1.0%.&...

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