Equity Market Remains Fueled by Momentum, Sentiment, and an Improved Technical Picture

Numerous technical indicators hit all-time highs…

Highlights

• Numerous technical indicators hit all-time highs…

• … as tail risks are systematically removed

• Monthly GDP has contracted at a three- and six-month pace

• Big, Beautiful Bill nearly passed, but no market reaction

Key Takeaways

• Republican Budget Nears Passage: The Big, Beautiful Bill narrowly made it through the House (with one procedural hurdle to clear), but the market reaction thus far has been muted. The fiscal hawks have been scared off — the razor-thin vote and a 60% public disapproval rating on the document shows that there is absolutely no broad support for this budget-buster of a bill, but it does chalk up another “win” for the President.