Morning Notes — Near Term SPX

The near-term risk/reward for the SPX remains higher given extreme bearish equity sentiment, light positioning and oversold conditions.  Month end pension/sovereign wealth fund rebalancing and a rolling end of buyback blackouts should add near-term buying pressure. Tech remains the most oversold sector in the S&P 500 with yesterday’s advance showing early signs of a reversal, but we remain biased to cyclical/value sectors over the intermediate-term.