Rotation into Equal-weight and Rate-Sensitive Value broadens, while Tech still looks to be in need of consolidation

Near-term US Equity trends remain choppy but bearish when eyeing $SPX and $QQQ, and continue to show bifurcation vs. $DJIA and Equal-weighted $SPX as the rotation toward non-Technology-related sectors continues. I would not yet sound the all-clear, as near-term trends, Elliott-wave structure, and momentum still favor additional selling pressure, and the market still needs to recalibrate its rate expectations with Warsh's discipline, which very well might take time. Furthermore, DeMark signals show evidence that Technology weakness might need to continue, which gels with the bearish cycle composites pointing lower into at least late July. The positives revolve around WTI Crude oil and long-term interest rates starting to weaken, which I expect will likely continue in the months ahead, and CPI and/or a change in FOMC interest-rate policy might serve as a catalyst in this regard. Overall, it continues to pay to favor the equal-weighted $RSP and rate-sensitive Value over stretched momentum, and there's no evidence that this intraday snapback translates into any kind of technical positive for many Growth stocks.

$QQQ reversed sharply off its intraday lows, tempering the immediate breakdown risk while the broader caution holds

$QQQ traded down as much as 3% intraday, undercutting recent lows near 694, before rallying back to close off just 1.15% at 707.83, an intraday reversal which might seem bullish to some investors. However, the daily high-to-low range still proved to be quite negative, and the downtrend from early June remains very much intact.

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