PULSE Monitor: Will Good Be Good Enough?

This is Citi Research's weekly US Equity Strategy monitor using the "PULSE" framework (Price, Unanticipated, Liquidity, Sentiment, Earnings). "Price" holds at negative as cross-asset valuations sit in the top decile, yet forward multiples are less stretched. "Unanticipated" stays negative as equity implied vol remains subdued heading into 3Q reports. "Liquidity" notches back down to negative as domestic equity fund outflows resurface and the 4wk moving average remains negative. "Sentiment" stays negative—multiples sit above the top end of the FV range and the Levkovich Index is still in euphoric territory. "Earnings" are still a positive—revision trends remain healthy and consensus estimates for 3Q and CY'26 are stable. The Q3 earnings season kicks off next week;