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SPX/USD — Sector Rotation Weighs on Index

Key Highlights
• S&P 500 pressured by AI stock rotation
• Dow outperforms on cyclical strength
• Tech sector sees continued profit-taking
• Key US data releases ahead this week

Market Overview
The S&P 500 remains under mild pressure as investors rotate out of high-valuation technology stocks into cyclical and defensive sectors. Despite recent weakness, broader market sentiment remains constructive, supported by expectations of Fed easing and steady economic growth into 2026.

Technical Outlook (H4)
• Price below 20-period MA
• Stochastic approaching oversold
• Correction remains orderly

Key Levels
Resistance: 6895.66; 6934.93
Support: 6782.70; 6744.02

Fremora Takeaway
The index is consolidating rather than breaking down. Holding above 6782 keeps the broader uptrend intact. Stabilisation in tech stocks would likely support a rebound.

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USO/USD — Oversupply Narrative Caps Oil

Key Highlights
• WTI trades near $56 amid heavy selling pressure
• Oversupply forecasts dominate price action
• Geopolitical risks fail to lift prices meaningfully
• 2026 surplus expectations weigh on sentiment

Market Overview
WTI crude remains under sustained pressure as oversupply expectations overshadow geopolitical disruptions. While Venezuelan and Russian developments create headline noise, global inventories and bearish 2026 forecasts continue to anchor prices near multi-week lows.

Technical Outlook (H4)
• Price below 20-period MA
• Stochastic deep in oversold territory
• Trend remains bearish despite slowing momentum

Key Levels
Resistance: 57.17; 58.23
Support: 55.87; 54.82

Fremora Takeaway
Oil remains structurally weak below $58. While oversold conditions may slow declines, the broader trend stays bearish unless price reclaims key resistance. Downside risks remain active into year-end.