Inside Markets

We expect the Fed will cut rates later this quarter in response to slowing growth rather than for ‘policy normalization’ reasons amid falling inflation data.

The SPX keeps its bullish bias above 5375 and needs to break below 5230 to signal a potential reversal in our opinion.

Quarter-end pension fund rebalancing officially ends tomorrow, but the dynamic was largely played out by Tuesday’s close.

The SPX is consolidating recent gains after moving into a cluster of technical resistance levels between 5415-5490.

Market breadth improved over the last three sessions as concentration issues are usually addressed during month/quarter-end pension fund rebalancing efforts.

Quarter-end pension fund rebalancing began late last week and should continue for the next 2/3 days.

The SPX keeps its bullish trend at levels above ~5290 and realized volatility remains supportive-for now.

US equities are mixed and off best levels with the S&P 500 (SPX) attempting its 32nd record close for the year, though narrow leadership makes the current bull market highly vulnerable.

Weekly jobless claims are the highest frequency labor data we have.

Market internals have notably deteriorated over the last few months.