US Equities Near Low of Expected Range
-US Equities are nearing the lower end of our expected range.
-As stated in our July 7 Alert, our expected risk for S&P 500 is 10% from the high, or 1,917.
-Daily data is quickly becoming Down-Extended and we will watch for signs of bottoming.
-Because our long-term measure of Momentum remains high, we expect US equities will rebound and make new highs around year-end.
Copper – follow-up:
-As stated in our July 7 follow-up, Copper did indeed turn back down and has now reached our risk level. But there are no signs of bottoming.
Wheat – follow-up:
-Wheat (and agriculture in general) remains most attractive within Commodities.
US 10 Year Yield – follow-up:
-The expected rally in treasury bond yield has exceeded our expected range of 2.5-2.2%. Near-term target is now 2.0-1.9%. Long-term risk is still 3.0%.