AAPL looks ready to start outperforming again

Near-term and Intermediate-term technical trends remain bullish for US Equities, and the push back to new all-time highs this past Thursday helped to reverse the minor downtrend that had begun to emerge earlier in the week for DJIA and Equal-weighted SPX. Technology’s strength has helped to drive recent performance and has solidified this sector as being the best performing out of all major S&P sectors on a 1-week, 1-month, 3-month, and 6-month basis.  However, the strong relative strength in other sectors like Financials and Industrials has helped to add some appeal to this rally over the last month, and the broadening out helps to add conviction to its durability. Despite the minor bounce in both Treasury yields and the US Dollar in recent weeks, no deterioration has happened to risk assets, and sentiment has not yet become bullish despite a 25% SPX rally in the last 14 weeks. Overall, it’s technically still right to favor that this rally can continue into August before some consolidation gets underway, which gels with post-election year seasonality.

$SPX remains pointed higher despite some late-day weakness, and insufficient evidence is in place to make the case for any downturn.

Momentum and breadth remain constructive on an intermediate-term basis despite some short-term waning. Additionally, seasonality and cycles don’t begin to turn too negative until August.

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