recent price action for individual assets. However, the fact that we have had multiple signals across a range of sectors and macro prices is typically a warning that markets have moved too far too fast in a more general sense. The last comparable episode was in early July in the wake of the Brexit sell-off. At that point Defensives were hitting record over bought signals with Financials and Cyclicals seeing the opposite. Against the backdrop of heightened uncertainty over the effects of Brexit the models provided a great signal to fade the violent rotation. With these signals in mind we look for a period of consolidation in the rotation trade. The models are short term in nature and are not intended to identify strategic turning points — although like in the case of Brexit they do tend to emphasize when a crescendo is reached. While we would look for another potential leg in some of the reflation trades over the coming months we would prefer to wait for a pull back. The Basic Resources sector provides a useful example in how to use the models tactically. Three times this year prior to the current instance the sector has hit overbought levels on its relative CT| indicator. Previous pullbacks lasted 4-8 weeks and averaged -11% in relative performance terms. Table 5: Composite Technical Indicators for sector relative returns Table 6: Bollinger scores —bond proxies 2.5-3.5SD oversold (+100 max overbought; -100 max oversold} 52-week Z-Score Since Oct 27 Recent 1m extreme Latest Healthcare ° 98 al Real Estate 34 24 Personal & Household Goods 0 -94 0 Media 29 18 Food & Beverages -31 -93 0 Food & Bev 26 29 Telecom -25 92 0 HealthCare 25 -18 Utilities 8 -92 3 Telcos 24 29 Technology 0 as 26 Travel & Leis 2.1 07 Media | 87 7 Retail 15 0.4 Industrial Goods & Services 0 -13 35 Prs & HH Gds 42 06 Oil & Gas 1 -45 4 Autos 08 05 Autos 0 ale 8 Insurance 0.9 08 Chemicals 0 8 0 Technology 10 06 Travel & Leisure 0 -2T 37 Banks 10 06 Financial Services -{ 3 43 FinServ 10 06 Construction