Breakout should help SPX climb above 5500 before stalling out Array ( [cookie] => 961df9-4ac57a-d81b1d-503b3a-067d28 [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 2 [max_usage_crypto] => 2 [lock] => 1 [message] => [error] => [active_member] => 0 [subscriber] => 0 [role] => [visitor_id] => 175684 [user_id] => [reason] => [method] => ) 1 and can accesss
Gains in US Equities this week constitute a bullish short-term breakout that should help SPX extend gains up to 5500-5600 before some stalling out (potentially by the end of the month). While this short-term breakout is certainly helpful towards helping Equities extend higher technically, the weekly downtrend and bearish momentum will likely take time to reverse. Thus, a two-step forward, one-step back type framework is likely to be in place in the foreseeable future. Despite Equities likely extending gains higher in the months ahead, the next month likely could prove quite choppy, technically speaking, and might not trend up as quickly as market bulls might expect. However, it does look likely that the early April lows represented an important low for Spring 2025, & shouldn’t be tested in a bullish framework in the coming months. Going forward, SPX 5500, QQQ-466.43, and DJIA-40,661 remain key areas to exceed and have confidence in a larger rally back to new all-time highs. Outside of Equities, the US Dollar looks to have begun a minor bounce this week. However, trends in both DXY and TNX should prove bearish in the months ahead, so not much of a rally is expected in either.
Overall, despite the fading of early gains in US Equities after Europe’s close, Wednesday’s follow-through of Tuesday’s breakout remains technically positive, and market breadth managed to expand by a 3/1 bullish margin.
Technology managed to dominate performance by rising more than 2.50% on the day (Equal-weighted Invesco Technology ETF rose by +2.52% today). Moreover, gains in four other sectors eclipsed 1% in Wednesday’s trading: Financials, Healthcare, Discretionary, and Communication Services.


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