Good morning,
Rotation is the lifeblood of the bull market, and short-term, we may be due for some more.
We’ve been tracking and calling out the Anything But Big Tech rally, and that’s boosted our models to some strong performance to start the year. And especially when looking at the chart of small-caps, there’s good reason to believe the trade has legs in 2026.
But.
If you haven’t been positioned this way, now is not the time to shift your portfolio all the way that way. And investors who have been positioned this way shouldn’t be doubling down.
We’ll look at some of the most important areas that are overbought and oversold in today’s report, as well as a caution signal on one area that investors have poured money into to start the year.
Today’s report will review:
Key levels on the S&P 500
Groups most vulnerable to short-term mean reversion
Mag 7 charts ahead of earnings
Foreign stocks
Rates and the dollar
and more!
