There is no need to waste time speculating about what may or may not happen in the Greco-German wrestling match in the coming days, weeks, or months.
If you are in the business of making money, it is always more productive to focus on what the price action is saying.
From this perspective, the market showed unmistakable strength last week. Yes, there was fretting and fear-mongering early in the week, but once the Fed statement was out of the way and proved to be as dovish as could be reasonably expected, the market embarked on a fairly broad rally that firmly re-established the uptrend in my opinion.
However, I would be remiss not to acknowledge some diverging developments that became evident during Friday's pullback.
The following is a review of where the strength and weakness were most readily apparent:
STRONG - Russell 2000: All eyes were indeed on this index last week and the bulls got what they were hoping for. The Russell broke out to new highs with conviction on Thursday and kept all those gains on Friday
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Enjoy your Sunday.