Highlights
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Market internals have reached their first oversold reading since March, yet the S&P 500 remains only modestly lower...so much for the September swoon.
- Current oversold conditions should spark a tradable rally, whether as part of a durable low or beginning of a broader topping process.
- Leadership remains concentrated in cyclical and growth-oriented groups, while traditional defensive sectors such as Utilities, Staples, REITs, and Telecom are lagging.
- Current breadth, trend participation, sector rotation, and banking leadership remain
