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Drop to multi-week lows near-term oversold, but structure bearish

gm-  US equity index futures dropping to new multi-week lows this am, as Treasuries finally start to rally in the wake of equity weakness while US Dollar also backing off after a strong run-  Important to recognize that weak Chinese exports aren't necessarily the cause of today's weakness as most Global indices peaked in early September and SPX topped out near 8/23-  the key as to why we're getting the sudden acceleration is partly due to our recent consolidation being broken to the downside and many Sectors plunging back to new multi-month lows-  (See Materials, Healthcare, while Technology made a huge About-face reversal from new highs which is important given its weight as the HIGHEST rated sector in S&P at near 20%)  But to blame today's selling on heightened "fears" on China is a bit hard to swallow-  Most of the short-term cycles suggest lows in place by either 10/19, or 10/26-7 with the latter being a bit more likely and some acceleration lower into next week-  The Defensives have begun to stabilize and these groups are preferred for near-term outperformance, with the Telecomm stocks having made new multi-day highs after severe underperformance (VZ, T) while REITS, Utilties bounced yesterday despite yields rising and should rise further today given yields backing off while equities are weak, so these sectors remain the ones to favor for the balance of the next 1-2 weeks until Equities stabilize-   S&P got down to 2113 overnight so this will be the first key area to watch on the downside but with a good likelihood of a test and probable breach of 2100 at Sept lows before all said and done-  So secondary support at 2100-3- Percentage of stocks above their 50-day is down to 32%, less than 1/3.. while Percentage above 10-day is at 26%.. Tuesday's reversal seemed to be the bigger tell as HUGE amount of volume into declining vs advancing issues happened right near the market HIGH.. which gave credence to this selloff as having some importance (as opposed to when this occurs after multiple days of selling and can often mark trading bottoms = HIGH TRIN,,etc.. so not disimilar from the period last December which marked HIGHS -   FOR Now, defensive stance proper until/unless 2150 reclaimed with good likelihood of 2100 being tested before this is all said and done-  Premkt movers: CTRV, OCUL, NVFY, while on downside- FCX, X, MELI, CUB, INSY, GPRO-  Let me know if I can answer any questions