Healthcare likely underperforms into late April; Lowering to Neutral

I continue to see the US stock market as being attractive, technically speaking, and do not feel sufficient risk is there to warrant a selloff at this time. While price action has been a bit more subdued in recent weeks following momentum gauges having gotten overbought, there remains precious little other evidence with regards to frothy speculation to excessive valuation measures that would warrant a major selloff.  Rallies up to SPX-5350-5400 are definitely technically possible into mid-April before a consolidation gets underway. Both Treasury yields and US Dollar should be starting to roll over.

Another largely uneventful day where indices finished at a slight loss, which now represents three straight days of losses and four days where the closing price was below the opening print.

However, as the daily SPX chart below illustrates, SPX has barely retraced 38.2% of the low to high range just since 3/15 which marked the recent swing low of the current uptrend.

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