The reason many are doubtful of the ability for equities to rally from here is because, in spite of rising yields, major indexes $SPY & $QQQ have not moved far off all-time-highs. On the surface, it doesn't look like a market that has shaken off froth. But indeed, it has. The real story is under the hood in individual stocks. June-August saw the *worst momentum selloff in recorded history* in spite of resilience in the major indices. Jefferies Tech Momentum Index recorded a whopping -57% drawdown, while Goldman Sachs High Beta Momentum Index and Morgan Stanley Tech Momentum Index also saw their worst drawdowns in history, falling more than -40% peak-to-trough. That carnage continued and broadened well past momentum in September to affect most of the individual stocks in the market. 78% of stocks in the S&P-500, or nearly 4 out of every 5, traded down for the month of September. For the last 12 consecutive sessions of the month, there were more new 52-week lows than 52-week highs. The $NYSI or NYSE McClellan Summation Index, which is a long-term breadth indicator, has fallen off a cliff to -752, which is relatively in-line with other local market bottoms over the past 5-years, almost all following significant market corrections or crashes over that period. The only difference this time is, the indexes barely budged because most of the single-stock carnage was off-index or under-weighted. In the backdrop, we've set a record streak of 7 consecutive months where yields have risen, tied for an all-time-record, and the selling in bonds has become parabolic, signaling the potential for some imminent relief. This is the type of backdrop where even a sliver of good news, a slight abatement in fear, or a mild softening of the worst-case scenario can lead to a broad & aggressive snapback rally like we've seen many times before. Weaker economic data, good news about the war in Iran, or both, could easily serve as that catalyst.