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The recent selloff took a turn for the worse with the break of multi-week lows in QQQ, representing the worst two-day selloff since October 2023.  While I argued in last Friday’s note that this week should be important in causing a low to this recent decline, it doesn’t look to be in place just yet after Monday’s drop.   Interest rates and US Dollar continue to trend higher and these are key reasons along with the ramping up in geopolitical tension that stocks are declining.  Furthermore, QQQ just broke to multi-week lows, and this firmly puts the focus on later this week for a possible bottom, vs. earlier in the week given cyclical projections.  At present, after just a -3.6% decline over the last few weeks, this pullback falls in line with seasonal tendencies which argued for possible 2Q weakness before rallies back to highs.  I continue to view this decline as short-term in nature, vs the start of a major pullback.

Unfortunately, all of the positives about Technology resilience, lack of Defensive strength, cyclical tendencies and sectors like Healthcare and Financials nearing support couldn’t do much to help markets stabilize today, and the break in QQQ looks damaging in the short run.

To ask ourse...

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