Key reasons for thinking this pullback proves short-lived Array ( [cookie] => c06cd0-faa7bf-3ac002-908895-b90a82 [current_usage] => 2 [max_usage] => 2 [current_usage_crypto] => 0 [max_usage_crypto] => 2 [lock] => 1 [message] => [error] => [active_member] => 0 [subscriber] => 0 [role] => [visitor_id] => 187311 [user_id] => [reason] => [method] => ) 1 and can accesss
Short-term trends in US Equities remain bullish, and the minor consolidation this week in US Equity indices has not proven severe enough to cause any technical deterioration in the rally from early April lows. Despite the four-day downtrend for most US indices, I remain encouraged about the technical progress and structural improvement that has occurred in SPX over the last six weeks, and feel that an upcoming move back to challenge February peaks should be forthcoming. Precious metals have begun to turn back higher, and the bond yield breakout is likely to prove short-lived into next week before yields start to reverse course and trend lower to join the US Dollar’s decline. I favor Industrials, Financials, Technology, and Utilities, while also favoring owning precious metals and Treasuries. Additionally, Emerging markets have appeal given the drop in the US Dollar and should be overweighted for further upside progress in the months ahead.
Friday’s tariff announcement caught the market off-guard today unfortunately, spoiling the plans for a relaxing start to the weekend. However $SPX, $QQQ, and $RSP all closed higher than their opening prints from Friday’s open which was somewhat comforting.
SPX got down to 5800 and closed slightly above on a close. However, there is no high conviction that this pullback is complete, given the gap-down on Friday. While the bounce was encouraging, the minor downtrend from this past Monday’s peak is still in place. Furthermore, the gap from early May has not yet been filled, but could do so as of next Tuesday, ahead of a rally back above February 19th highs.


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