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US Equities still don’t appear to be at support, though this is growing closer and could materialize initially next week given the combination of oversold breadth, worsening sentiment, and a drying up in selling in some of the formerly hardest hit sectors.  Trends, momentum and breadth remain bearish and pointed lower;  Overall, given widespread technical damage in many sectors it’s going to be important to see more evidence of a rolling over in both US Dollar and Treasury yields to have confidence of a sustainable rebound. Bottom line, I suspect an initial low should materialize next week

US Equities failed to follow-through on early bounce attempts, and pulled back to lows of the day and for the week with SPX and QQQ trading right above important 50% and 38.2% retracement areas, respectively.

Of the various metrics I laid out earlier this week as to why Stock indices should bottom, a few stand out as being particularly important heading into next week:

  • Counter-trend exhaustion per DeMark indicators is highly likely to materialize on Equal-weighted S&P 500 next week with a good likelihood of SPX and QQQ as having the potential to signal exhaustion ahead of FOMC.
Breadth has gotten compre...

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