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No Signs yet of any Downturn- Rally Ongoing

S&P HOURLY chart shows this rise, which remains remarkably symmetrical and steady thus far

S&P HOURLY chart shows this rise, which remains remarkably symmetrical and steady thus far

An amazing amount of near-term resilience in the market, with the S&P up over 13% from mid-February intraday lows while Emerging markets, Crude and Gold have all outperformed.  Just in the last few trading days many market timers have "come of the the woodwork" to suggest fading the rally based on things like Low Put/call ratio, or overbought conditions, or a slowing in breadth from extremes, which are all accurate, but yet have yet to produce even a minor downdraft.   We've seen sectors like Industrials start to gain more momentum, with XLI having surpassed prior highs and making relative breakouts to SPX, while healthcarehas started to stabilize a bit, if the price action in GILD, MNK, ILMN, BIIB is any guide.  Bond yields meanwhile have begun to rebound in the US while showing some definite signs of stabilization in Europe after the severe pullback, and Bund yields in particular should be watched for signs of turning back higher.  The ongoing rise in WTI Crude oil continues to be something which needs to be watched daily given the strong correlation with US Stocks of late, with many suggesting here as well that the rally isn't backed by fundamentals and should soon stall out and reverse course.   In the days ahead, the Industrials rally still looks to have some "legs" given the recent surge in momentum,and if Yields begin to turn higher with any sort of quickness, this should aid the Financial sector as well, which would serve to prolong this rally longer than many might expect.  For now, simply using a break of a simple 5 or 10-day ma in the SPX should be a good guide for any upcoming pullback.  Until that happens, its proper to favor stocks within the Industrials and Financial sector which have begun to turn higher, along with various Healthcare names which are trying to rebound after recent weakness-  BIIB, GILD, for example.  Charts shown of the S&P in both hourly (above) and Daily charts (below)

S&P daily, showing overhead resistance from last May, along with 10-day ma at 2013 for Monday, which will serve as an effective trailing stopfor longs

S&P daily, showing overhead resistance from last May, along with 10-day ma at 2013 for Monday, which will serve as an effective trailing stopfor longs