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August tends to be a quiet time of year in terms of events but a heavy period for equities, and that’s exactly what we’re seeing this year and this morning. Following the first two weeks of the month where stocks have had trouble holding on to their daily gains, futures kicked off the morning higher but have given up all of those gains as we approach the opening bell.  So far the losses have been modest, but just as it’s encouraging to see markets rebound on weakness, it’s disappointing to see selling into strength. 

Wherever the US equity market goes for the second half of August, a lot will likely depend on the direction of the Mega Cap stocks. Last week was a tough one for the group as every one of them besides Alphabet (GOOGL) was down and in most cases down sharply, but some perspective is also in order as they’re all still up by 34% or more YTD and only two of them (AAPL and MSFT) are oversold.

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