STRONG MOMENTUM - RISK ON

• SPY: closed near $771.33 today; watch today's session high and low as the immediate technical reference for the next trading day. NASDAQ (QQQ): $723.85 (+3.40%) VIX: 16.84 10-Yr Yield: 4.62% Gold (GLD): $374.16 Fear & Greed Index: 59.2 (greed)

• VIX: closed near $16.84 today; watch today's session high and low as the immediate technical reference for the next trading day.

- The AB-AI SPY gauge is highly positive at 74.4, indicating strong bullish momentum in the market. - The S&P 500's current trading level well above $770 suggests continued upward traction with resistance healthy around $800. - With an 80% calculated bullish probability, market sentiment firmly supports continued equity gains. - Over recent weeks, the yield curve remains steep enough to support growth, providing a positive outlook for the months ahead.

- Monitor any reversal around the $750 support level for SPY as a signal of potential downside risks. - A VIX spike above 20.00 would raise concerns about increased market volatility and potential risk-off trading. - A breach below the 4.5% threshold in the 10-Yr Yield could indicate investor uncertainty, leading to shifts in bond markets. - Developments leading to geopolitical instability or adverse economic data could act as strong bearish catalysts.

Given the strong bullish indicators, portfolios should remain heavily weighted towards equities, particularly in the technology sector where momentum is pronounced. Allocating a significant portion to growth-oriented ETFs like the SPY and QQQ is advisable, maximizing potential returns from prevailing market trends. However, maintaining a cautious position in gold to hedge against unforeseen volatility is recommended. Risk management strategies should focus on options hedging and employing stop-loss orders near critical support levels, such as $750 for the SPY, to protect against sudden market downturns.

- S&P 500: Monitor $750 for support and $790 as resistance; a breach above indicates higher upside potential. - VIX: A floor at 16.00 and ceiling at 20.00; movements outside of this range could signal a volatility shift. - NASDAQ at $740 resistance; any breach here could trigger further momentum-driven buying. - 10-Yr Yield: Keep an eye on a 4.5% support level; shifts here impact broader risk-appetite and fixed-income strategies.

With market indicators strong, the contrarian may seek value in neglected sectors or consider potential shorting opportunities in currently overbought indices. While the market remains largely bullish, tactical allocations should remain adaptable, ready to swiftly adjust should any bearish signals intensify. Consequently, ensuring liquidity for strategic repositioning will be key in maximizing advantage.

NEXT REVIEW: Thursday, August 06, 2026