Emerging markets look attractive as US Dollar has likely peaked out

US Equity trends remain bullish and mildly overbought after the last four out of five days of gains and still appear likely to push a bit higher this week before finding some stronger resistance based on price and time into mid-July.   Minor evidence of strength is apparent from Consumer Discretionary, Financials, Industrials and Materials, but still largely hasn’t proven broad-based enough to suggest a bigger period of outperformance from these groups has gotten underway.  This week contains a possible market-moving event as June CPI is being released on Thursday.  Overall, cycles, seasonality, and ongoing strength in Technology argues for a bullish stance in US Equities into at least mid-July before some backing and filling.  SPX targets could materialize initially between 5650-5750.

Similar to last week, no meaningful change has resurfaced to the thinking that stock indices have a bit more to go on the upside before some consolidation gets underway.  At present, trends and momentum are bullish and higher prices are likely up to 5650 as a minimum upside resistance target to the current rally.

Sector rotation into Industrials, Materials and Consumer Discretionary seems to be happening, with the only major technical overweight to be disappointing vs. expectations being Healthcare. 

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