Technology comeback continues

Equity trend bullish but I suspect that until both DXY and TNX break trendline support the rally might prove a bit choppier into the end of May before a stronger push higher.   A broad-based move seems to be approaching, but hasn’t yet been confirmed by a breakout in Equal-weighted S&P 500 nor Russell 2000 index.  Overall, while short-term trends have been bullish in SPX and QQQ, the last few days have been lower in Equal-weighted SPX, showing consolidation, despite recent strength in Technology.   I suspect this weakness proves short-lived given Tech strength and other sectors should be able to come to the rescue.   A broad-based rally should begin by end of month, and momentum and breadth are supportive of further gains into mid-to-late June.   

S&P trend should push up to 5350-5400 into mid-June before some minor consolidation

This picture helps to explain the recent price action and wave structure in SPX, and despite some minor stalling out in the Equal-weighted SPX, it’s still likely that SPX can push higher to at least 5350.

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