The pullback of yesterday was due to strong ISM Services data that triggered fear of a hawkish Fed and hence pushed rates higher. However, rates rae barely bouncing here as we can see below.
Moreover, since the differential in rates between the 10Y Treasuries and corporate bonds weakened, that automatically rendered US equities more attractive yesterday. The $SPX has now room to go to $4180
We can see below that the Money Flow is still well above the negative level on most large caps and growth sectors.
The NHNL indicator continues to display consolidation here.
Conclusions:
I am not that negative anymore for the coming holidays/Santa Claus rally season, as value wise there is some possible room for higher prices.... and as far as the Money Flow stays positive, there is no reason to be short here.
