Leuthold's latest Major Trend Index holds at Low Neutral, as a modest breadth recovery does little to offset deeper structural concerns. Small caps clawed back from correction territory for their first simultaneous weekly gain since mid-August, yet leadership remains narrow - the Nasdaq notched another record high while the equal-weighted S&P 500 trailed the cap-weighted index for a sixth straight week, extending a relative-strength decline now at a 23-year low. Sentiment has eased from recent extremes, nudging the MTI scorecard higher, but with valuations still elevated and the economic backdrop softening, Leuthold cautions this may be a stretch where cooling optimism reflects deteriorating conditions more than a contrarian buying signal. Tactical accounts remain cautiously positioned at 51% net equity exposure.
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