The Leuthold Group's latest Major Trend Index holds at Neutral, as improving market breadth helps offset a fresh round of inflation concerns. Participation has broadened — small- and mid-caps have quietly outpaced the S&P 500 over the past two weeks, and leadership within large-caps is widening beyond a handful of names. Working against that, the inflation picture turned hotter: headline CPI hit a three-year high, and producer-price gains now sit well above the level that has historically pressured equity returns. For now, firmer breadth and a cooler core reading keep the market's underlying health balanced, even as the durability of the inflation spike remains an open question.
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