Will the Buying Spree Continue?

Near-term trends for US Equities are bullish, but getting extended as part of negative momentum conditions on weekly and monthly charts, in my view.  Treasury yields and US Dollar should be close to bottoming.   Equity rallies likely could peak temporarily this week and consolidate into mid-December before any year-end rally.

Monday showed just minor weakness and also negative breadth in Advancers vs Declining issues as well as volume.   However, there wasn’t any real evidence of markets showing a meaningful reversal and post-holiday volume proved understandably muted in US trading.

Many key Technology names like AAPL, NVDA, GOOGL among others showed evidence of making minor peaks in price.   Yet, more is needed to think that these stocks and Technology as a whole is starting to weaken.   Given confirmed DeMark-based exhaustion (TD Combo Countdown 13) on QQQ daily charts as of Monday’s close under 390.74 and TD Sell Setups on SPY in place since last Thursday’s close, it seems like markets have reached a key make-or-break.  Overall, movement down under 378.50 on QQQ and/or below 4500 on SPX should provide better clarity as to the possibility of near-term weakness for “Market Bears”.

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