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Trend bullish - Expect recent consolidation is nearly complete & SPX begins to push back higher post Wednesday’s CPI print

The minor stalling out in US benchmark indices doesn’t appear that bearish as little to no real deterioration has occurred.  However, this churning has been helpful in some regards, as US indices like the NASDAQ are less overbought than three weeks ago.  Furthermore, this consolidation has prevented sentiment from ratcheting up to more exuberant levels.

Overall, I view this minor pullback as being healthy, technically speaking.  Prices are largely right near closing levels from a month ago, back on 6/15, and haven’t undercut prior weekly lows, nor violated uptrend line support.

The minor slowdown in Technology hasn’t been too damaging to this sector, but rather has allowed sectors like Discretionary and Industrials to “pick up the slack”.  Moreover, Healthcare should be kicking into gear this week for what could be a very favorable time for SPX’s 2nd largest sector by market capitalization.

As discussed last week, the rotation into Small-caps and Transports looks promising in my view technically.  Furthermore, the rolling over in the US Dollar on...

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