Sector rotation helps Biotech and Energy bounce, while Utilities lag

Short-term trends in US Equities remain bullish and, following last week’s breakout, now lie within striking distance of all-time highs.  While a rally over February peaks should happen this Summer, my thoughts are that the next week could prove choppy and allow for some consolidation ahead of a move back to all-time highs. This would gel with weak seasonality trends for June, while breadth and momentum have slowed in recent weeks. Meanwhile, the US Dollar has begun to move sharply lower, while Treasury yields have stabilized in the short run.  Additionally, precious metals, Emerging markets, and commodities are all an area of near-term focus and can likely work well in the weeks/months ahead, given a falling US Dollar.  Overall, a push up to between 6050-6150 is likely for SPX, while QQQ should rally to 540 before some minor stalling out.

Tuesday finished stronger than price action over the last few days and market breadth came in about 2/1 positive as Energy, Consumer Discretionary and Communication Services all outperformed Technology.

There ended up being little technical proof of any kind of stalling out, and both $SPX and $QQQ continue to inch closer to test former all-time highs from this past February.

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