Market conditions improved last week

Market conditions improved last week, with risk indicators stable and 0 of 5 major crash catalysts visible on the horizon.

Historically, when technical readings are elevated but catalysts are absent, overbought conditions can persist longer than expected.

Key readings:
• Market Breadth: 60.8% (stable, improving over recent weeks)
• S&P 500: $685.69 | +1.8σ above trend
• Divergence: 0.96σ (positive, stable)
• 52-Week Highs: 209 stocks (stable)

Outside view:
Based on historical matches (Aug–Nov 2019, Nov 2020–Mar 2021, May–Aug 2023), setups with price above trend, positive divergence, and improving support tended to drift higher over the next 2–4 months.

With 0 of 5 major crash catalysts visible, stretched technicals do not automatically imply imminent downside.

Forward guidance:
Maintain current positioning with selective additions on pullbacks (rather than aggressive accumulation).