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Equity trend bullish but one can’t rule out some temporary consolidation after this push back to new high territory as QQQ, SPX consolidate gains before rallying further.  Yields and the US Dollar have begun to accelerate lower but lie near uptrend line support and have not yet broken down materially.   Overall, short-term trends remain bullish, and momentum and breadth are supportive of further gains into June technically. Whether or not investors choose to hold out for possible consolidation here is a tough choice but I suspect that any weakness proves temporary and will still result in gains into mid-June. It’s arguably right to be bullish, and consolidation would make SPX more attractive for further gains up to 5400.

$SPX, $QQQ have officially joined the Nasdaq Composite back at new all-time highs, while DJ Transportation Average, Russell 2000, DJIA and Equal-weighted S&P 500 remain shy of these levels.

This minor divergence is not seen as a concern but is part of a normal process of various averages pushing back to new highs “one by one” in a manner where the rally slowly becomes more broad-based in nature.

Specifically, the act of Treasury yields extending their declines across the curve al...

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