Market Summary
The market continues to show impressive resilience. The S&P 500 has maintained its upward path, staying above important support levels and showing no signs of breaking its longer-term trend. This consistency reinforces confidence that the advance which began in the spring is still healthy.
At the same time, the areas of the market that typically thrive in strong environments are continuing to lead. Growth-oriented and higher-risk groups are outperforming more defensive areas, a sign that investors are willing to embrace risk and position for further gains.
Together, steady index strength and ongoing leadership from risk-focused sectors give us the same clear message: the market remains in a bullish phase, and conditions favor staying invested as long as these patterns persist.
S&P 500 – Bullish Trend Holds
In last month’s newsletter, we highlighted how the S&P 500 was firmly above its uptrend line and trading above all of its key moving averages. That remains the case today. The index continues to respect the rising trendline we have been tracking since May, and price is still positioned above the 20-day, 50-day, and 200-day moving averages.
This consistency reinforces the same bullish dynamics we discussed previously. The market has not given us any reason to change our thesis, as it continues to build on the strength established earlier this summer. For now, the trend remains higher, and as long as the index holds above these support levels, the outlook remains positive.
Relative Strength – Risk On Leadership Still Intact
Last month, we noted how risk-on sectors and industry groups were leading the market by outperforming Consumer Staples (XLP), which is a defensive, risk-off sector. That same leadership remains firmly in place.
The relative strength lines for Small Caps, the Nasdaq 100, Technology, Semiconductors, and Software all continue to trend higher, confirming that investors remain positioned toward growth and risk-taking. This is the exact kind of leadership you want to see in a healthy bull market.
The consistency of this pattern reinforces what we have been writing for several months now: the market’s strength is not just visible in the index itself, but also confirmed by the areas of the market that historically lead during bullish phases. This remains one of the strongest signals supporting the ongoing bullish thesis.
Client Account Update
Client accounts are fully invested, reflecting the continued strength of the market environment. Our positioning is aligned with the current bullish trend, allowing us to participate fully in the advance.
We continue to closely monitor market technicals for any signs of changing dynamics. If conditions remain positive, we will stay invested to capture growth. Should technical evidence point to weakening momentum or elevated risk, we will adjust allocations accordingly to protect client capital. Our focus remains on balancing participation in strong markets with disciplined risk management.