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Staples, Cap Goods rally helps to lead SPX up above initial resistance despite Yields, WTI lower

Into Europe's close, Indices still fairly stretched in the short run.. UKX managed to finish up 1.3% as GBPUSD fell over 1.2% into the close...  For US indices though, prices have pushed back to near session highs, so if we're going to selloff, we need to do today or tomorrow.  The act of moving back over 2073.75 hit near 630 this am is a minor positive.. So can't rule out move to 2081 today, or 2091 tomorrow which would be a very good risk/reward SHORT.. For today, breadth far more subdued than yesterday at only around 2/1 positive.  Still seeing Goldman's short basket outperform S&P , implying some further short covering today while Small-caps outperforming.  Bund & TY YIELDS have turned back down with greater speed today.. Which argues for at least a minor pullback, but for now, haven't seen barely any price action that suggests this will happen in the days ahead and will want to see AT LEAST a move back down to new multi-day lows- 

Move back OVER 2075 keeps uptrend alive a bit longer.. Prices stretched in short run, but important to note that this only applies to intra-day basis and really no other timeframe.  But over 2075 into todays close COULD very well lead to 2088-91 into tomorrow, so can't rule out another day, but given the formation, should be the final push higher of this move from 6/27 lows.  Pattern began to take the shape of a 4th wave consolidation move early on given a lack of weakness and just in the last hour into Europe's close managed to push back up above highs made early this am near 6:30 am.

 

Both Industrials and Staples up over 1% today, and Utilities higher by 66%, so outside of the movement in stocks like GWW, TXT, TYC, PH, IR, all up more than 2%.. Most of todays move is very defensively led.  Crude remains lower by nearly 2% after challenging resistance near 50 late yesterday..  For now, despite some of the issues with yields, crude moving lower, some of the Aerospace stocks helping to fuel this rise even further and pays to stop out shorts over 2075 thinking 2088-91 area very possible BEFORE any pullback gets underway.. HSY, PAYX, ATVI, GIS, CPB, K, HE'S, HPE, TSN, MU the biggest gainers, all up more than 3% while on the downside-  CHK, DRI, HBI, TSCO, VLO, HUM.  All lower by 2% or more-   overall, attempts at hedging 2075 thus far look to have failed.. With prices up near highs, but another 4 hours til market closes, so to have any sort of bearish stance, we'll need to see immediate pullback to near earlier lows and into today's close-  OVER 2075 argues for 2085-91 area into tomorrow BEFORE a pullback occurs