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Fractional loss this week represents only the third weekly loss out of the last four-and-one-half months for SPX and NASDAQ, while Value Line’s Friday loss prevented this from reaching new multi-month highs.   Both the US Dollar and US Treasury yields have shown some partial weakness in the last couple weeks, which have been arguably helpful to commodities and Emerging markets.  Overall, a broadening out in US Equity markets has been happening in a stealth manner in recent weeks, and now $XLF has pushed up to former all-time highs along with Equal-weighted Healthcare in the last week.  Bottom line, this past week’s fractional losses don’t signal any technical damage to SPX and it’s still expected that further gains above 5200 are likely in SPX next couple weeks. 

A few important points following this week’s minor consolidation in US Equities:

-Trends remain upward sloping with no evidence of trend damage in recent weeks, nor excessive negative momentum divergence that would signal technical concern.

-Technology has not shown evidence of peaking, despite some sideways trading since last month.  Equal-weighted Technology ETF ($RSPT) was still the top performing Sector ETF of...

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