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The video in this report is only accessible to members

US Equity markets remain trending lower and a test of August lows looks increasingly likely given the ongoing resilience in TNX and DXY. 

S&P’s rally proved short-lived as September futures reached the first meaningful upside target before turning back lower.  S&P’s late Friday selloff directly coincided with TNX pushing back higher from 4.209% to above 4.25% by the close. 

Seeing some evidence of Treasury yields and US Dollar turning down will be paramount before expecting much of a lasting bounce in Equities, technically speaking.  Keeping a close eye on the Treasury and Foreign exchange markets remains important.

Breadth finished mildly positive as Energy and Utilities provided the best sector leadership.  Meanwhile Industrials, REITS were the biggest laggards in Friday’s trading.  However, most of the other sectors were muted, and Technology, to its credit, finished positive by +0.12%.

As I discussed mid-day Friday through Flash Insights, S&P could possibly rally to 4477-8 before giving way (Which was the 1st of 3 possibilities).  The fact that this lined up with a 38.2% Fibonacci retracement area along with a 100% alternative wave projection and a downtren...

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