SPXT - Technically Speaking: Topping Patterns Popping Up Everywhere

• With the Nasdaq index more oversold than the S&P 500, I suspect we will see a rally shortly in these stocks, which we will use as a "selling" opportunity to reduce exposure.
• Both international and emerging markets are well ahead of any expected growth in the U.S. economy, so the risk of disappointment is high.
• With valuations high, the bullish rationalization why prices can go higher is a bet on explosive economic growth, a falling dollar, low-interest rates, and a consumer spending surge, all while inflation remains muted.
• In our view, the two key issues that have the most significant potential to undermine market confidence remain the dollar and rates.
• The dollar has started building higher bottoms and is currently triggering buy signals suggesting there may be more to this rally.

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