Energy nearing an attractive entry point after WTI Crude decline

US Equity markets should be nearing an area of support, and Treasury yields and more meaningful rallies might begin for both Equity indices and Treasuries starting next week, potentially coinciding with weaker economic data and/or more evidence of FOMC pausing their rate hikes.  Movement down to SPX-4165-4200 looks important based on a number of different metrics, and might provide some stability into next week. 

Technically, it’s hard saying Wednesday’s rebound was all that important technically, but directly coincided with weaker ADP data that resulted in an early sharp bounce for Equities.  Downtrends remain intact, and momentum and breadth are downward sloping, but nearing short-term extreme levels.

Importantly, some of the groups which have underperformed dramatically in recent weeks now look to be closing in on support.  Regional Banks, DJ Transportation Avg., and Small-cap ETF, $IWM, are all nearing support which looks to be important.

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