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Editor's Note: Below is an excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.

McCullough: Why Are Stocks Oversold? It's Math... - el 5 18 17

I’ll happily invest in US #GrowthAccelerating exposures (again) while the political class causes consensus to sell them to us.

When I went to my biggest cash position of the year (on May 11th), the title of this note was “Why Not Higher?” That’s where I explained why...

A) The S&P 500 was signaling immediate-term TRADE overbought

B) Front-month VIX, US Equity Volatility signals immediate-term TRADE oversold
C) US Dollar Index signals immediate-term TRADE overbought
D) UST 10yr Bond Yield signals immediate-term TRADE overbought

So, let’s grind through what the process says about points A, B, C, and D this morning:

A) The S&P 500 was signaling immediate-term TRADE oversold

B) Front-month VIX, US Equity Volatility signals immediate-term TRADE overbought
C) US Dollar Index signals immediate-term TRADE oversold
D) UST 10yr Bond Yield signals immediate-term TRADE oversold

Q: “Why?”

A: Because they are. It’s just math.

McCullough: Why Are Stocks Oversold? It's Math... - 05.18.17 EL Chart