Leuthold's Major Trend Index held Neutral for the week ending September 4, 2026, with tactical net equity exposure at 56%. Cyclical was downgraded to -2 on shrinking Fed liquidity (~$115B pulled from the banking system over three months), reversing prior upgrade momentum. Sentiment stayed cautious at -3 on persistent investor optimism, while Technical was the bright spot at +3. Rising 2- and 5-year yields continue to pressure Valuation, Cyclical, and Technical scores, supporting a defensive equity stance.
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