AAPL & "Mag 7" outperformance should boost SPX over the next week

Near-term and intermediate-term technical trends remain bullish for US Equities, and Wednesday’s bounce made sufficient progress to help establish a new short-term uptrend, which should carry higher over the next 1-2 weeks to hit new all-time highs and might even exceed 6500. The outperformance of $AAPL should lead to a coming breakout, which could help energize SPX and QQQ despite some increasing weakness being seen in other areas of the market. At present, bearish August seasonality should take a back seat to a push back to new highs, and I don’t suspect much of the weakness gets underway until possibly the August expiration. Furthermore, both Treasuries and the Euro and Yen look to rally over the next week, which also could help Precious metals and Cryptocurrencies push higher as well. While technical risks have begun to rise in recent weeks, it looks premature to concentrate on these at present as indices begin a climb back to new all-time highs and trends remain positive. My view is that this coming week could prove to be the most positive week of performance for August before some slowdown gets underway.     

Overall, I think Wednesday’s push higher satisfied the technical requirement to help add conviction that a rally back to new all-time highs is underway.

Cryptocurrencies, Treasuries, precious metals and Euro, Yen, and Sterling also look to be able to rally in the next week, and should create a very positive week for risk assets ahead of a possible stalling out near August expiration.

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