QQQ likely to rally to 500, then stall

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US Equities remain on good footing, despite the recent backing up in US Dollar and US Treasury yields over the last couple of weeks. Both SPX and DJIA have successfully pushed back to new all-time highs, and NASDAQ should approach its own all-time highs within the next week. Moreover, most of Europe along with Japan is now signaling that a coming pushback to all-time highs could be getting underway.   Overall, I expect that risk assets should still work well into October expiration before a possible stall out into a traditionally very negative seasonal week for stocks.  For now, technical structure, momentum, and breadth have improved markedly in recent weeks, while sentiment is not yet bullish enough to think Stock indices might peak out. SPX target lies at 5835, and QQQ should find resistance at 503-505.

This past week has proven quite bullish for SPX and DJIA market structure, and Equal-weighted SPX just broke out Friday back to new all-time highs.   QQQ finished at the highest levels since July while both IWM and DJ Transportation Average rose to multi-day highs.

Specifically, the breakout in Financials on Wednesday of this week on an Equal-weighted basis helped this gro...
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