The MTI held at Low Neutral, with Leuthold's tactical accounts keeping equity exposure at a moderate 51–52%. Large-cap strength (META +13%, S&P 500 +1.2%, Nasdaq at a new all-time high) masked a sharply narrowing market: the S&P 600 posted its sixth straight down week and the average S&P 500 stock trailed the cap-weighted index by 140bps, a breadth divergence running since late August. The 10-year yield's move to 2006–07 highs continues to weigh on the Technical category, while Valuation held steady at -3, cap-weighted metrics still score poorly, though the forward P/E has fallen to the 70th percentile of its 1995-present range on strong EPS growth (non-normalized operating EPS up over 30% year-to-date). Small-cap, mid-cap, and equal-weight relative valuation measures have improved to neutral, their best reading since the start of the Iran war.
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