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Equity Roundup: Inching Higher

US STOCKS

Stocks firmer, near recent highs amid carry-over risk-on tone after May minutes showed no discussion of larger rate hikes. SPX emini futures currently +71.75 (1.8%) at 4048.25; DJIA +488.35 (1.52%) at 32608.2; Nasdaq +271.4 (2.4%) at 11705.99.

  • Technicals: Despite the positive ton, stocks remain vulnerable. This follows the reversal from 4095.00 on May 18. The pullback has left key resistance at 4099.00 intact, May 9 high.
  • The move lower, and last Friday’s trend low, opens 3801.97 next, 38.2% of the Mar ‘20 - Jan ‘22 bull leg (cont). Clearance of 4099.00 is required to ease the bearish threat. This would signal a potential short-term base.
  • SPX leading/lagging sectors: Consumer Discretionary sector continues to outperform (+4.45%) again lead by autos (Tesla +6.5% at 701.63) and retailing. Industrials sector follows (+2.04%) as transportation/airlines trade strong. Laggers: Health Care sector (+0.26%) as bio-tech and pharmaceuticals lag for second day running; Utilities (+0.57) .
  • Dow Industrials Leaders/Laggers: Back over 300.0 -- Home Depot (HD) climbs +9.13 to 302.70, Goldman Sachs (GS) +7.85 at 322.75, Boeing (BA) +5.71 at 127.77. Laggers: Merck (MRK) -1.51 at 92.24, JNJ -0.61 at 179.01.

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