Our indicators are moving toward oversold, says Truist's Keith Lerner

• Dow, S&P, and Nasdaq are tracking for their 4th negative week in a row, with the Dow pacing for its worst month since Sept. '22 and S&P for its worst month in a year.
• Market indicators are moving towards oversold, with 52% of AAII investors being bears and put/call ratios moving up, but a full 'flush out' has not occurred.
• Crude prices have eased slightly but are still significantly up this month (WTI +44%, Brent +50%), while Treasury yields are rising (10-year hovering around 4.3%).
• Defensive sectors like Consumer Staples, Materials, Health Care, and Real Estate are among the week's laggards, potentially due to prior run-ups and inflation concerns.
• Truist's house view still anticipates two Fed rate cuts by year-end, and Lerner believes the economy and markets are 'battle-tested' and can withstand the Fed remaining on the sidelines.

Keith Lerner of Truist Wealth discusses the current market downturn, noting that stocks are tracking for their fourth negative week in a row, with the Dow and S&P 500 facing their worst month in a year. Despite this, he suggests the bull market still deserves the benefit of the doubt, with indicators moving towards oversold conditions, and views further declines as a potential buying opportunity. He highlights the resilience of companies and the economy, expecting the Fed to remain on hold for longer.