Equities are officially very oversold with the S&P500 sitting spot on its fifty-day moving average, which I expect to provide initial support for either a bounce or pause (feels like the latter just now). Internals are mildly negative along with sentiment, but in range-day formation for the time being. Have I ever mentioned I hate narrow ranges? Nevertheless, it is good to see the QQQQs outperform.
Lastly, I do wonder how much of this heaviness relates to next week’s first round of Q3 earnings reports as much the recent economic readings ala early July (also the last time we kissed the 50-dma, coincidentally). It occurs to me that Q3 vs. Q2 is going to be a tough comparison with sales still slow and costs largely removed from corporate structures earlier in the year.
