Sector Weightings reviewed;  Energy likely to fall further as OPEC+ plans to restore output in April

Recent selling pressure should be nearly complete following the eight-day downdraft since 2/19.  Short-term momentum has gotten oversold, and many key large-cap Tech stocks look to be in/near support. Furthermore, Treasury yields and the US Dollar have been breaking down sharply, and I don’t see the correlation between Treasuries and Equities reversing anytime soon. Moreover, sentiment has continued to grow more and more negative, given the constant rhetoric regarding tariff uncertainty, and the larger intermediate-term uptrends for SPX remain very much intact. Overall, if Tuesday’s tariff announcements are less severe than 25% for Canada and Mexico and 10% for China, as the media has announced, I suspect this will prove to be a bullish catalyst for an Equity rally. While sentiment remains negative as SPX, along with NVDA, have pulled back to test important support, I don’t see the degree of technical weakness at current levels.  Risk/reward looks favorable for me, as Equities will bottom out this week and turn higher. The next 2-3 days should shed some light as to whether Equity indices can stabilize and turn back higher.

Weakness in “Tariff Tuesday” could find support as both SPX and NVDA test important support

Monday’s weakness brought the price down to a near striking distance of January lows in SPX and right near $113 in NVDA, while QQQ broke 500.

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