How the Fear/Greed Index is calculated (so you can stop freaking out about a "sentiment" indicator). Market Momentum — S&P 500 vs its 125-day moving average Stock Price Strength — NYSE 52-week highs vs lows Stock Price Breadth — advancing vs declining volume (McClellan Volume Summation) Put/Call Options — 5-day average put/call ratio Market Volatility — VIX vs its 50-day moving average Safe Haven Demand — stocks vs Treasury bonds (20-day returns) Junk Bond Demand — junk vs investment-grade yield spread

Semis + Mag7/Hyperscalers up together today. This has been a rarity this year (semi vs hyperscaler correlation at an all-time low). The recipe for new S&P 500 highs is hypers + semis rallying together.

📺 What You Need To Know Ahead Of This Week: Is A Contrarian Rebound Setting Up? Please ❤️like and 🔁share with fellow growth stock investors @toddmichael70 provides an update ahead of the new week, noting that the market remains in a short-term pullback, but there are signs conditions may be improving. Leaders performed well last week, while the S&P 500 $SPX / $SPY and Nasdaq $QQQ reclaimed both their 21-day and 50-day moving averages. That opens the door to a potential medium-term upgrade in our Trend Gauge if the rebound can hold. All major indexes also remain above their 200-day moving averages. But beneath the surface, breadth remains the biggest concern. Mid-caps $MDY fell 1.7% last week and small-caps $IWM dropped 1.5%, with both remaining technically weak. * On both the NYSE and Nasdaq, 52-week lows have exceeded 52-week highs for two consecutive weeks, and even Friday produced net new lows across the major exchanges. Participation has deteriorated sharply. Only about 28% of S&P 500 stocks are above their 50-day moving averages, approaching the 20% level reached during the March washout. Roughly 52% of stocks remain above their 200-day moving averages versus about 45% near the previous broad-market low. In other words, the indexes are recovering faster than the average stock. * At the same time, contrarian indicators are becoming increasingly interesting. Individual investor bullishness just suffered its biggest decline in more than a year, while bearish sentiment climbed above 53%. The CBOE put/call ratio also spiked to roughly 0.90 on Fed Day — around the same level seen near the spring market low. Those readings don't confirm a bottom, but they suggest fear and defensive positioning are becoming increasingly stretched. Combined with deteriorated breadth, that could be creating the conditions for a contrarian rebound if price action confirms. * Macro headwinds haven't disappeared. The Fed raised rates 25 bps last week, with markets pricing more than a 90% chance of another hike this year. Oil and Treasury yields remain elevated. The 10-year yield briefly pushed above 5% before finishing at 4.998%, while the 30-year ended around 5.331%. Whether the 10-year can remain below 5% could be important for equities this week. * For $SPX / $SPY, 7,620 is the key near-term level to defend, and we don't want to see Thursday or Friday's lows broken. For $QQQ, watch 734.58, the previous August high. Progress above that level would strengthen the case that this rebound is developing into something more meaningful. * So, the sentiment and positioning are becoming increasingly supportive from a contrarian perspective, while the major indexes are repairing technical damage. But breadth remains weak and macro headwinds are still significant. The ingredients for a rebound may be forming. Now price and participation need to confirm it. * Watch this Short video where @toddmichael70 breaks it all down in detail 🔽

Pretty insane and speaks volume to the volatile nature of the market. Over the past three months, GS's TMT Momentum basket has been more than eight time as volatile as the S&P 500. Source: GS