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US Equity and Treasury markets likely bottom in the next 1-2 weeks and breaks of current downtrend lines would suggest an initial bottom is in place.  At present, insufficient technical evidence is present to suggest that markets have definitely bottomed.

US Equities are nearing areas of a possible low, but require some strength to say with any conviction that lows are already in place.

I can’t rule out a pullback to 4300-30 in SPX, nor 349 in QQQ.  However, if this doesn’t happen ahead of Jackson Hole, and Powell’s comments coincide with rates rolling over, or $NVDA’s earnings result in Technology jumping higher, than a temporary low very well could be in place.

Factors like SPX nearing daily oversold territory while sentiment has gotten more negative are certainly positives given the broad-based nature of the advance since May. 

Additionally, Equal-weighted SPX lies right near key support ($RSP) which makes this an attractive risk/reward heading into the end of August.

Despite September being a seasonally weak month similar to August, an oversold bounce looks near which should be far greater than what’s unfolded in the past 24 hours.

Importantly, sectors like Technology and Industrials, ...

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