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S&P and QQQ are now back to new all-time highs quickly as US Treasury yields have begun their descent.  This won’t prove to be a straight shot for either asset class, in my view, as the broader market has not yet begun to participate, and some signs of negative momentum divergence remain present.  However, a stair-stepping rally makes sense for Equities as Treasuries seem to have shown their hand this week, and June seasonality in Election years remains positive.    Overall, a bullish stance remains correct, but with close eyes on other sectors starting to kick into gear in the weeks to come.   Both AAPL and NVDA are nearing levels that will make an interrupted rally throughout June potentially difficult, but we’ll discuss what needs to happen in today’s note. 

Wednesday’s breakdown of May lows by 5, 10, 30-year Treasury yields cemented the intermediate-term trend for the next 6-8 weeks as being down, in my view.

As discussed, we’ve seen a gradual weakening on the fringe in the labor market and some ongoing disinflationary data which the market tends to view favorably.  In other words, bad news, in the short run, remains good news for risk assets.

Howeve...

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