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S&P 500 — Index Approaches 7,000 Amid Rotation Trade

Key Highlights

• Dow hits fresh record; S&P holds above 6,900
• Tech stocks pressured by AI-spending concerns
• Market rotation favors cyclicals and small caps

Market Overview

Equities held their gains as investors digested the Fed’s dovish tone and sector rotation continued. AI-related names lagged following Oracle’s weak results, while cyclicals and small-caps outperformed. Market sentiment remains supportive of a year-end rally, with the 7,000 level now in sight.

Technical Outlook (H4)

• Price consolidates well above 20-period MA
• Stochastic rising toward overbought zone
• Bullish structure intact toward upper resistance

Key Levels

Resistance: 6966.21; 7033.91
Support: 6841.46; 6777.03

Fremora Takeaway

Momentum supports further upside toward 7,000. Short-term dips remain buyable while price holds above 6,840. Rotation remains healthy and broadening market strength supports index resilience.

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USO/USD (WTI) — Crude Struggles Below $59 Despite Dollar Weakness

Key Highlights

• WTI rebounds from sub-57 lows but remains capped
• Oversupply concerns persist despite USD weakness
• Iraq output recovery continues weighing on sentiment

Market Overview

WTI saw two-way volatility, recovering from early lows but failing to retest $59. Supply-side pressure remains dominant as Iraq’s restored production and potential increases in Russian exports overshadow the supportive effects of a weaker USD. Market remains trapped between macro tailwinds and heavy fundamental headwinds.

Technical Outlook (H4)

• Stochastic lifts from oversold region
• Price attempting to retest 20-period MA
• Upside capped unless price reclaims $59+

Key Levels

Resistance: 58.51; 59.30
Support: 57.16; 56.38

Fremora Takeaway

WTI shows early signs of stabilization, but fundamentals remain bearish. Only a sustained break above $59.30 would shift bias upward. Otherwise, downside risks persist toward the 56s if sellers regain control.