Leuthold's Major Trend Index was downgraded to Low Neutral for the week ending September 11, 2026, with tactical net equity exposure cut from 56% to 52%. The S&P 500 fell 80bps despite an 8% crude oil surge and rising 2s10s yields, while small/mid-caps dropped 2-3% and continue lagging the S&P 500 by 5% since July. The downgrade reflects narrowing breadth, weakening relative strength, Momentum, and Quattro scores. Separately, hot CPI/PPI data have solidified expectations for a Fed hike this Wednesday, which Leuthold believes could calm bond markets and help the MTI's weak Liquidity scores if long-end rates ease.
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