Crude breakdown kicks off Nov decline and weakness possible until late month – Selectivity important

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The video in this report is only accessible to members

SPX and QQQ have surged on above-average breadth and have carved out impulsive rallies over the past week.  This is likely a positive for gains to near early October highs into late this week.  However, it’s likely that volatility is approaching for both Equities and Treasuries and Yields might begin to lift again starting around 11/13.  While the extent of this initial lift off late October highs has been impressive, it should undergo consolidation into Thanksgiving holiday before rallies can continue.    

Bottom line, the rally off the 10/27/23 lows should play out as a three-wave bounce and might find initial resistance late this week.   While hourly momentum has neared overbought levels, DeMark signals aren’t yet in place on most intra-day timeframes that could suggest a short-term peak.

Similar to recent days, $XLK and large-cap Technology have helped to carry markets at a time when a few sectors have not participated.  Tuesday showed weakness in Energy, Materials and REITS all to the tune of 1% or greater in Equal-weighted terms.  While Tuesday’s rally proved to be a bit better in terms of market breadth than Monday, it should still be difficult to expec...

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