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Because of this, let's continue to maintain our bullish posture for now as long as liquidity levels remain ample enough to absorb any bearish ambushes, while watching sector rotation closely as money seeks out areas of undervaluation as the advancing price sequence continues.

The U.S. markets continued to rally into Wednesday's Fed Statement, but persistent weakness in the Technology and Health Care sectors was just too much to overcome and the major market indices finished the week with an average loss of 1.34% from last Friday's closing numbers, with the NASDAQ Composite Index feeling the blunt of the damage with a loss of 2.67%. With Friday finishing up the month of April, the major market indices wound up with an average gain of .55%, with the broadest measure of market activity, the New York Composite Index, following up on March's gain of 6.78% by leading the markets higher by another 2.25%.

In spite of the late week sell off, our cumulative charts array remain with very little analytical changes from the last several weeks as all continue to trend nicely to the upside from their late January/early February lows. Special note this week comes with the Precious Metals and XAU advance/decline lines which continue to power higher and this finally led to the price of gold breaking out of its 2 month symmetrical triangle consolidation pattern to the upside, and the XAU index itself ringing up an impressive 14.83% gain for the week.

So with the BETS continuing to improve again this week to a reading of +45 in spite of losing both the NAAD and NAUD cumulative lines from their bullish configurations, the global markets remain friendly, though a substantive case can be made that we're also over extended both internally and time wise where a corrective sequence wouldn't be surprising to relieve this same analytical imbalance. With that said, however, global liquidity and monetary flows into the interest rate sensitive issues remains quite ample, and because of this, this same pause to refresh is likely to be contained by sharp and short shake outs while maintaining the rising path of least resistance. With this as our backdrop then, let's continue to use any sell offs as further accumulation buy points, while focusing on sector rotation as money seeks out areas of undervaluation within the overall ascending trend.  

Have a great trading week!

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