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Morning Comments post ECB

LINK above, Copy and paste in browser for Technical analysis Video of SPX, RTY/SPX, and XLV/SPX

Good am- ECB-rate Unchanged.. and Draghi's comments following at 8:30, and then OPEC results .. S&P showing small losses.. While Europe showing moderate gains, Both Spain, Italy higher by 1%+.. Dollar and TNX both lower by a small amount-    Key developments for the last couple days include both Small caps and Healthcare starting to show signs of breaking out which could lead to future strength-   and IWM/SPX and ITB both look to outperform and should be overweighted- Most eyeing Crude, TNX, JPY for how market can move in the near-term, with TY YIELDS largely range-bound, but JPY having started to bounce and Crude showing no meaningful weakness-  For OPEC meeting, with most expecting no CUT, but simply a cap on production (news of this would be bullish likely up to 52 in the short run)  S&P key levels near 2087,then 2077-82 while on upside- 2103-5 will be important-  Expect a challenge of highs before any meaningful pullback in the next 24-48 hours given yesterday's resilience

Minor hourly Reverse Head and Shoulders in the making which if exceeded - 2100, would drive likely over 2105 above April highs-  For now, just a 3 day pattern, but should be respected if prices move above 2100 which would likely cause acceleration

Prices sitting in consolidation mode near April highs-  Yesterday's pullback was insufficient to think any sort of pullback is imminent and trends still support a test of highs which would be more likely than a selloff under 2082 in the very short run

EURUSD fell to support which had held since early December of last year.  Thus far, pre-Draghi, just consolidation and no meaningful EURUSD spike, nor decline for this matter, but pattern above does support a probable bounce

Just to reiterate some comments from last night- Small caps breaking out both on an absolute and relative basis vs SPX, which should drive near-term outperformance for RTY, IWM

Biotechs starting to show some strength with the move both over april highs and above longer-term trendline-  Expect further outperformance and the entire Healthcare sector looks poised to start showing more relative strength after underperforming all other 9 sectors YTD. So the worst performing sector this year should begin to show some mean reversion