China, Copper start to advance given Politburo’s monetary shift

A minor US Equity pullback looks to have begun, though it remains tough to be too bearish in the month of December.  Dips might very well end this week before attempting to push back higher, given a lack of structural weakness. Looking back, today proved to be the first pullback to multi-day lows since early November, while market breadth proved to be just fractionally negative.  I expect that the next two weeks present the optimal period from a cyclical perspective to consolidate some of these recent gains, but until SPX and QQQ break the uptrend from early November (Near 6006), pullbacks likely could prove buyable. Initial technical support for SPX lies near 6017.

Monday’s weakness might have seemed overdue to some, but it wasn’t the broad-based shellacking that many Bears had been hoping for.  Sectors like Healthcare and Materials were positive on the day, and with REITS and Staples were four sectors that rose in trading. There were barely more Declining issues than Advancing by the end of the day, and Technology proved to be very much mid-range, not a big decliner.

While I did expect that some market consolidation might be possible this week into next, SPX arguably requires a move down under 5977 to expect that a larger decline is getting underway, which looks doubtful this month. 

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