<!-- wp:paragraph -->
<p>On the economic front, Consumer Sentiment rebounded from one of its lowest levels in history this month thanks in part to the cooling of red-hot gas prices. Conversely, new home sales fell for the sixth time in seven months, as near-record home prices and significantly higher mortgage rates are weighing on demand and causing inventories of new homes to continue to pile up.  Lastly, both PCE and Core PCE moved lower, confirming the possibility of peak inflation; yet inflation remains well above the Fed’s 2.0% target.   </p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>The technical environment continues to be a point of concern. Both our Canary (in the coal mine) Index and our Gorilla Index fell back below their interim support levels – although neither have broken to new lows at this point. Additionally, market breadth has become notably worse over the past week following a period of improvement during the recent rally.</p>
<!-- /wp:paragraph -->

<!-- wp:paragraph -->
<p>There are no changes to the Model Fund Portfolio this week. With the continued emergence of recessionary warning flags and lack of bullish confirmation, the Model Fund Portfolio remains defensively positioned with a net 44% invested allocation.</p>
<!-- /wp:paragraph -->