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The video in this report is only accessible to members

Equities have extended gains and remain in a new short-term bullish uptrend as part of intermediate-term uptrends which never wavered during the recent three-week decline.  While more evidence of falling Yields and US Dollar is likely beginning in the days/weeks ahead, it’s likely that the recent uptick in Healthcare, Financials and Industrials are constructive factors for this market technically and should help it broaden out.  Moreover, Small and Mid-cap styles have come back to life over the last week and this recovery is also important despite it being in its infancy.  Overall, I expect that SPX has begun its trek back to late March highs at 5264.85 and should exceed this en route to 5400.

Four sectors rose more than 1% to kick off the new week, and Industrials, Financials, Communication Services and Technology all led performance Monday. 

As shown below, the act of the Equal-weighted S&P 500 ($RSP) regaining its two-month downtrend along with rallying back above its late April highs is encouraging for the prospects of this rally getting more broad-based in the days and weeks to come.

Both Industrials and more importantly, Financials (more importantly given its size within SPX) rose...

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