Please enable javascript in your browser to view this site!

Dollar decline has been more important than Equity volatility of late

As of 2pm.. Equities have largely maintained most of early gains.  However most of Europe turned down into its close. and seeing yields a bit down from earlier highs, but still holding onto fractional gains-  Prices at this point don't have much wiggle room if they're going to turn lower near-term.  S&P above 2396 in SPX cash.. would suggest a move back to new highs.  but the strength of last week's pullback was far stronger than the last 3 days of rally attempt .. and the divergences that grow from any push back to new highs would prove meaningful as indices enter June-  For now.. the DOLLAR decline has proven to be far more powerful than the equity pullback of late, and Yield curve has started to stabilize a bit.. breadth is about 2/1 positive today  and Utilities are leading all sectors with Tech and industrials also making a strong showing-  Energy the only sector down on the day..  so key to note is that S&P and DJIA are nearly at the point where they fill the gap from Wed and can actually rise into early June.. not decline which was originally thought. But both TRAN and IWM remain very weak structurally and most certainly will not follow suit in moving to new highs which will be problematic heading into late Summer/Fall-    For SPX.. we lie merely 4 ticks away from this important area