Four major sectors could close at new all-time highs this week while NVDA slumps

The recent stalling out in most US Equity indices over the last week hasn’t taken away from the appeal of the current rally from early August lows.  A bullish advance back to new all-time highs is still expected into mid-September ahead of any seasonal Fall correction.  The Equal-weighted SPX has already pushed back to new all-time high territory coinciding with the breakdown in the US Dollar and Treasury yields, and Small-caps have started to kick into gear once again.  Furthermore, market breadth remains constructive and sentiment is not yet bullish enough to mark a larger market peak.  Cycles show strength into mid-September in both Equities and Treasuries before a selloff takes hold, and sectors like Financials, Healthcare, and Consumer Discretionary have been instrumental in serving as a “tailwind” for Equity gains at a time when Technology has been a bit wobbly.  Overall, unless Technology starts to roll over in bigger fashion it looks right to stay bullish.

US Equities were able to show fractional gains on Thursday, as 9 out of 11 sectors finished positive with meaningful movement back to new highs from Financials, Healthcare, Utilities, and Industrials. (While $SPX closed flat, $RSP finished up +0.37%.)

Thus, despite the continued focus on NVDA after last night’s earnings, and the drop in the stock during Thursday’s session, the broader market managed to chug higher on Thursday, and remains in much better shape technically in the short run when compared to QQQ and SPY.

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