Last week, equities consolidated recent gains as investors began to rotate out of big tech and into the broader industrials. The DJIA is at a key inflection and has enough waves in place to potentially complete an "ending" diagonal or break up and out of its recent consolidation. The Russell 2000 is also testing the […]

Last week's CPI came in not too hot, not too cold, but just right for this goldilocks market - the US$ broke sharply lower while equities, bonds and commodities rallied in the hope of a less interventionist Fed and potential soft landing. Equity markets are threatening to push towards new ATH's but small caps continue […]

Global equities continue to stall at resistance as global rates rallied across the board - the risk markets are attempting to price in higher rates for longer as global economies remain resilient with constrained labor markets. Equity markets appear to be forming a small degree wave (iv) correction within an ongoing impulsive rally. The alternative […]

Last week, equities drifted lower from resistance but the declines are NOT yet clearly impulsive. Importantly, the Russell 2000 overlapped its proposed wave (i) high to invalidate the near term bull case and open the door to a more bearish reversal. The equity market rally is getting narrower with very few stocks dragging the primary […]

Last week, risk assets rallied strongly following the Fed pause and expectation of a global slowing of rate rises and easing financial conditions. The benchmark SPX rallied strongly from its gap and go in what appears to be a 3rd wave. While we had been looking for evidence of trend exhaustion, this strong rally invalidated […]