My Homemade Artificial Intelligence Tools Tell me This About the Current Stock Market Situation – Sept 29/20

Trends & momentum remain negative short-term for US Equity indices and #SPX requires a move back over 4465 to expect this weakness is complete
Treasury yield breakout looks to extend, and should be bullish for Financials, yet might weigh on Technology near-term (Growth might underperform into October)
US Dollar index’s breakout to new highs for 2021 can allow for underperformance in EM, commodities into October
Breakdown in SPX makes it a bit early to expect an immediate snapback without more proof heading into October. 4300 is key as support while 4465 resistance:

Ongoing Short-term Concerns:

Traditional technical momentum indicators like MACD are negatively sloped on daily while RSI is not oversold
Uptrend from March lows have been violated by SPX, and broader-based IWV.
Inter-market negative momentum divergence present on several different time frames
Broader-based gauges like Value Line Geometric or NY Composite peaked out in Spring and never followed SPX, NDX to new highs in August
Half of SPX major Sectors peaked out this past Spring, while Technology has camouflaged this market rally given “FANG” dominance
Market cycles suggest weakness could persist into October before rally back to highs
Junk bond Spreads have widened out since July and have not tightened to new lows with push to new highs of equity indices into August
Leading sectors like Transports, Semiconductors have lagged in recent months
Treasury yield rally (which looks to continue, has served to deflate Growth/Tech
As seen below, Growth has begun to turn lower vs. Value after Treasury breakdown (yield rally) has led to Technology weakness near-term, while Financials, Energy remain strong. Given a four-month trendline violation, this looks likely to last into October: