XLK breakout bodes well for Technology ETF to test all-time highs Array ( [cookie] => 596a25-805399-724db3-06fc84-1cfaa6 [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] => 208285 [user_id] => [reason] => [method] => ) 1 and can accesss
Short-term trends in US Equities remain bullish, and despite some slowing in the breadth and momentum that has taken place in the last few weeks, uptrends remain intact. Moreover, I believe Tuesday’s breakout bodes well for a likely challenge of all-time highs in Technology ETFs like XLK as well as possibly SPX and QQQ before a slowdown into mid-June. As discussed before, while a rally over February peaks arguably should happen this Summer, it’s hard to make a technical call for an immediate breakout. Meanwhile, the US Dollar has begun to move sharply lower, and it’s expected that US Treasury yields should also be on the verge of following suit. Precious metals, Emerging markets, and commodities can likely work well in the weeks/months ahead, given a falling US Dollar. Finally, Small-caps should be given some scrutiny here, given the pickup in relative strength in recent weeks. Overall, a push up to between 6000-6150 is likely for SPX, while QQQ should rally to 540 before some minor stalling out.
Tuesday’s breakout in NASDAQ, SPX and IWM bodes well for upside follow-through this week following the consolidation pattern since mid-May having been resolved higher.
As was discussed yesterday’s I believe that SPX’s move above 5943 sets up for a possible 100 point move higher into next week.


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