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US Equity markets are likely to show a short-term low by end of week/month/quarter.  However, the break of August lows by AAPL and QQQ is a near-term negative that means this likely might not occur until Thursday/Friday of this week.  Short-term trends, breadth remain negative and momentum is nearing oversold levels while intermediate-term bullish structure remains intact.

At present, it’s tough to spin Tuesday as a positive as markets have begun to show more short-term evidence of downside acceleration.  However, this remains part of a larger uptrend from last October’s lows that has not been broken in SPX.  In my opinion, one can continue to label recent volatility as short-term weakness within an ongoing uptrend.

However, what was formerly just a minor pullback in Discretionary and Staples names has begun to metastasize across multiple sectors.  All 11 major S&P Equal-weighted sector ETF’s are lower by more than 1.4% over the past week.  Yet, Real Estate and Discretionary have borne the brunt of this selling, as each of these sectors has fallen more than 3.4%.

NYSE Advance/Decline has now broken its one-year uptrend from last October lows while the Percentage of stocks ...

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