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SPX/USD — Tech Rotation Weighs as Broader Trend Holds

Key Highlights
• S&P 500 pulls back amid tech-sector rotation
• AI stocks pressured after weak earnings guidance
• Cyclicals and Dow show relative strength
• Markets still expect multiple Fed cuts in 2026

Market Overview
US equities remain in a rotation phase rather than a broad selloff. While the Dow continues to push higher, the S&P 500 has softened as investors rotate out of stretched AI names into cyclical and value sectors. Despite hawkish Fed projections, markets remain confident easing will continue as labor data cools.

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

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

Fremora Takeaway
The S&P 500 is consolidating, not breaking down. As long as 6782 holds, this move reflects healthy rotation rather than risk-off stress. Upside momentum may return once tech selling stabilises.

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USO/USD — Oil Pressured Near Multi-Week Lows

Key Highlights
• WTI trades near October lows around $57
• Supply remains ample despite geopolitical headlines
• Repeated failures above $58 cap upside
• Holiday liquidity risks approaching

Market Overview
WTI crude remains under pressure as supply-demand dynamics dominate sentiment. Despite brief rebounds, oil continues to struggle below key resistance, with oversupply and muted demand limiting upside momentum. Geopolitical headlines have had little lasting impact, reinforcing the market’s focus on fundamentals.

Technical Outlook (H4)
• Price below 20-period MA
• Stochastic stabilising in mid-range
• Momentum remains weak

Key Levels
Resistance: 58.21; 59.30
Support: 56.27; 55.28

Fremora Takeaway
Oil remains structurally weak below $58. Until price reclaims the 20-period MA, rallies are corrective rather than trend-shifting. A break below 56.27 would expose deeper downside toward the October lows.