The video in this report is only accessible to members
The video in this report is only accessible to members

As I am going to be traveling Thursday and Friday, there will be no Note or Video on either of those days.

In the very short-term, this pullback has reached levels which signify a possible Technical support zone based on wave structure, breadth, momentum, seasonality and cycles.  US Dollar and Yields have not yet shown evidence of rolling over, but these arguably also have reached near-term overbought levels and various Counter-trend indicators have begun to suggest an upcoming reversal. The period between Thursday and next Monday should be important in providing a low to Stock indices and potentially Treasuries.

Simply stated, the 4% decline has proven swift and sharp and could result in the first three-week SPX decline since October.  However, the following three reasons give me optimism that a low is near and could very well materialize in the next 1-3 trading days:

  1. Technology weakness has not violated uptrends relative to S&P 500
  2. Defensive strength has been lacking and absent in Consumer Staples, REITS
  3. Breadth is short-term overdone, while holding up well overall
Overall, the most important catalyst from a technical perspective to watch for in the weeks ahead concerns a turn back lower i...

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