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Right now, we are bullish on the NASDAQ, neutral on the S&P 500 and bearish on the Russell 2000 from a quantitative signaling perspective.

What gives?

Well, if you’ve been stuck in the Old Wall mud, that may seem surprising – or even confusing.

But, as Hedgeye Keith McCullough explains in the clip above, it’s important to remember that all U.S. equity markets are not created equal. They’re not the same.

Each one behaves differently in our four-quadrant model, and knowing the makeup of those markets is critical as we see the U.S. heading into Quad 3 (growth slowing, inflation accelerating).

“[In Quad 3] tech [NASDAQ] goes from a top-three short, to not a short, to a net long because the growth that you can find in a decelerating growth environment is there for you to buy,” McCullough explains in this clip from The Macro Show.

“The S&P is neutral because it actually has a lot of sectors and sub-sectors that go up – not that it can’t go bearish again. Then you have the Russell, which is all the baggage – the financials.”

Watch the full clip above for more.

Why U.S. Markets Have Different Signals Right Now - hedgeye risk manager