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The video in this report is only accessible to members

The SPX’s near-term decline is ongoing, regardless of some brief stabilization attempts on Monday.  While US indices are now in the window for a possible change of trend, more upside follow-through will be needed to have proof of an impending advance.  Technically I think this happens Tuesday/Wednesday and results in sharp rally for US Equities.

2-year yields fell at the fastest pace in over 35 years over the past three trading sessions, a full 100 basis point (bps) move in 2-year yields.  That hasn’t been seen since Black Monday in 1987 and certainly is making investors consider changing their economic forecasts to reflect this collapse in Financials.

While it’s premature to say that this Financial undoing might be a more important factor to the FOMC than CPI or PPI reports coming out this week, it’s worth reporting that Spread markets have moved enough to reduce expectations to Zero for any further FOMC rate hikes in March.  Nomura went so far as to forecast a 25 bps Rate cut and Quantitative Tightening halt in March.

US Dollar has begun to roll over coinciding with US Treasury yields pulling back.  This has helped precious and base metals start to rally while Crude oil has remained stubbornly unde...

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