Seasonality tendencies might result in a stalling out after rally this week

Short-term trends in US Equities remain bullish, and despite some slowing in the breadth and momentum that has taken place in the last few weeks, uptrends remain intact.  While a rally over February peaks should happen this Summer, it’s hard to make a technical call for an immediate breakout. Both SPX and QQQ likely will find resistance near February highs that allows for consolidation in mid-June ahead of a push back to new all-time highs. Meanwhile, both Treasury yields and the US Dollar are likely to begin trending lower in the weeks to come. Meanwhile, Safe-Haven trades like Japanese Yen and Gold should be starting to turn back higher, and I expect that Equities can still rally despite this happening into mid-June.   I favor Industrials, Financials, Technology, and Utilities, while Emerging markets also have appeal given the drop in the US Dollar. Overall, a push up to between 6000-6150 is likely for SPX, while QQQ should rally to 540 before some minor stalling out.

As discussed last week, the minor stalling out in US Equity indices is thought to prove temporary before a push back above 6000 in SPX, which arguably should happen in early June.

Given the snapback recovery following worse than expected ISM data Monday, I believe this process of pushing back higher has gotten underway. 

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