“The Pause that Refreshes”

Equity trend bullish but one can’t rule out some temporary consolidation into next week after this push back to new high territory as QQQ, SPX consolidate gains before rallying further.  Yields and the US Dollar have pulled back to near uptrend line support and require larger weakness to expect immediate downside acceleration.  Overall, short-term trends remain bullish, and momentum and breadth are supportive of further gains into June.   Whether or not investors choose to hold out for possible consolidation here is a tough choice but I suspect that any weakness proves temporary and will still result in gains into mid-June. It’s right to be bullish, and consolidation would make SPX more attractive for further gains up to 5400.

US Equity markets look to be stalling out following this week’s push back to new highs.  While I sense it’s right to be bullish for a rise into June expiration, there very well could be some consolidation in the short run.

This might take the form of a choppier tape than what’s been seen in recent weeks, and sector rotation out of Industrials and Discretionary has been important and negative this week towards signaling that these sectors in particular might require a bit more consolidation before gains can continue.

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