BULLISH BIAS (65% Probability)

• SPY: closed near $751.71 today; watch today's session high and low as the immediate technical reference for the next trading day. NASDAQ (QQQ): $723.28 (+1.66%) VIX: 15.78 10-Yr Yield: 4.55% Gold (GLD): $378.18 Fear & Greed Index: 47.2 (Neutral)

• VIX: closed near $15.78 today; watch today's session high and low as the immediate technical reference for the next trading day.

• SPY: closed near $751.71 today; watch today's session high and low as the immediate technical reference for the next trading day. - Supportive yield curve with a healthy spread of 0.88% suggests stable financial growth environments conducive for equities. - Market breadth remains strong with 49 assets classified as strong bullish or bullish, supporting broader market participation with positive sentiment. - Technology sector has shown consistent growth over the last quarter, providing solid leadership in this market uptrend.

- Nearly 44% of asset categories sit in bearish territory, signaling underlying vulnerabilities that could surface. - Economic indicators continue to flirt near warning thresholds, as indicated by the Fear & Greed Index maintaining neutrality at 47.2. - Technical concerns persist with critical resistance levels in the NASDAQ sector; monitoring performance is essential to ensure momentum is maintained. - Potential regulatory pressures or geopolitical tensions could serve as triggers for a downward market correction, necessitating vigilance.

Given the current bullish stance, investors should consider maintaining a slightly overweight position in equities, particularly in technology and growth sectors that are leading the charge. Allocations to the S&P 500 can be justified by its strong performance trajectory, complemented by selected technology and innovation-focused assets like META and TSLA. Risk management remains crucial, so maintaining positions in defensive sectors such as Healthcare and Consumer Staples could mitigate potential downturns. Fixed income allocations should still be considered in the portfolio for income generation, though these should be kept selectively given the yield environment.

- S&P 500: Watch $732 as a support level and $789 as resistance; breaching resistance would signal continued upward momentum. - VIX: The range of 14 to 19 should be closely monitored; a breach on either side could indicate shifts in market volatility expectations. - NASDAQ: Any shifts near $730 should be carefully observed to assess continuation or stall of recent gains. - Gold (GLD): Should gold break above $390, consider the potential for a flight to safe-haven assets, indicating rising market anxieties.

The market's current bullish momentum does provide a compelling case for maintaining exposure to equities. However, the presence of bearish fault lines necessitates caution. The recommendation is to remain positioned for growth but with a defensive overlay to protect against unforeseen market turbulence. Balancing sectors accordingly and preparing for potential volatility is key.

NEXT REVIEW: Monday, July 13, 2026