Big Picture, Small Picture
Detailed analysis below...
The S&P 500 eked out a small gain last week (+0.5%), breaking a 4-week losing streak that had featured consistent -2% + selloffs.
On the bullish side of things, the US economy has clearly slowed, but last week’s data showed that growth is not collapsing. In addition, the trading community has already shed a huge amount of length in US equities and overall positioning is now underweight. Positioning is no longer the headwind it was throughout this correction, and in fact, it is now a tailwind (at least in the short term).
