The Leuthold Major Trend Index held Neutral for the week ending March 13, with net equity exposure at 50–51% and the S&P 500 just 5% off its January high despite three straight weekly declines. Sentiment deteriorated sharply nine bearish signals triggered a second category upgrade in three weeks but Leuthold isn't calling it a contrarian buy, noting the market's AI-driven, momentum-heavy, overvalued backdrop limits that signal's reliability. On inflation, the Cash Commodity Diffusion Index hit its highest level since late 2022, led by energy and metals, while agricultural commodities remain disinflationary.
Click here to read more of the "Major Trend Index" article.