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Energy Breakout helps S&P to resolve near-term consolidation Higher

Yet again, stocks were able to shrug off early weakness and push back higher, largely on the heels of a giant Energy move as Crude has broken out.. and we're seeing XOP , OIH and XLE all up more than 2% today while S&P managed to get above initial resistance and paves the way for a retest of Early Sept highs at 2182 and then 2196 in the days ahead-  going Against seasonality given the combo of positive structure, bullish sector participation and lessened Sentiment certainly seems to be correct as of now at a time when breadth has remained Stellar-   Not much resistance until near 2169-71 for Dec futures and Breadth is around 2/1 bullish while volume flowing at  3/1 pace into Advancing vs declining stocks.  Treasuries have just reversed course after trading higher into Europe's close with a move from 1.5788 down under 1.54 and now back up above 1.56, so a big reversal just a time when equities spiked and Crude shot higher-  TY YIELDS in general look to be right at good support and don't expect much more downside for yields. so like selling TY longs and considering TBT for a bounce along with Finanicials which have been hard hit-   Biggest gainers today are all Energy with the top 10 of S&P all higher by 6%+ MUR, RIG, DO, CHK, DVN, NOV, APA, HP, MRO, and NFX.. and all energy related.  Bottom 10 more discretionary related nad some retail with PAYX, LEG, NKE, MU, LB all down 2.5% or more-  Overall, look to stay long Equities, no change.. and expect to see Financials and Transports begin to join this rally a bit more strongly and help for broader upside participation as S&*P moves back to new highs

 

Minor breakout of the one-month pattern, but additional work to do on the upside, with Crude needing a move above $48 to think we have bigger upside move coming.  But given today's price action, this area should at least be tested in the near-term

S&P making favorable move also above resistance which should drive prices up further in the near-term to test last week's highs 2167-70 area for S&P FUT