Good Monday morning. Last week featured “the tell”, as the markets rallied on the back of significant beats from Mag 7 names META and MSFT while getting mixed economic data as Q1 GDP was negative while Fridays jobs report was solid. The S&P 500 has jumped 10% on 9 straight days of gains, as some of our major indexes have begun to close in on their 200 dma (nasdaq 100 is tagging the 200 dma).

Heads up: each US index is hitting extreme overbought readings on the VRA System (short term, only), joining Bitcoin, which hit EOBOS (extreme overbought on steroids, our most OB readings) on Thursday. With US ports clearly slowing down, news on trade deals with China (and others) will once again begin to take center stage.

This week: we have another important week ahead, led by the Fed meeting on Tuesday/Wednesday, capped by the Fed’s statement and Powell presser. While we won’t get a rate cut on Wednesday we expect a resumption of the Feds rate-cutting cycle at their June meeting.

Te...