Summary: Markets posted strong gains across major indexes with broad sector participation and improving internals, signaling a clear "risk-on" environment supported by easing geopolitical tensions, lower volatility, and bullish signals in global equities. Despite weak volume patterns likely due to the holiday season, technical indicators, sector strength, and seasonal trends point to continued market momentum.

Risk On

• Markets were up 3-4% on the week across the four main indexes. The S&P put in a new all-time high close on Friday. IWM remains the lone index under its 200-Day Moving Average. Real Motion is not overbought. (+)
• Thirteen of the 18 different sectors/industry groups we are tracking were up on the week, lead by Technology, Semiconductors, and Transportation. Consumer Staples were down while Consumuer Discretionary was up over 3%.  All bullish readings.(+)
• Geopolitical tensions have eased and helped the market go up with energy pulling off along with gold and some commodities. (+)
• Market internals improved across the board and are now all in positive territory and not overbought. (+)
• The new high new low ratio remains strong (without being overbought) as markets pushed to new highs. (+)
• The color charts (moving average of the percentage of stocks above key moving averages) are giving positive reads overall with more strength on the longer-term and a bit more mixed on the 20 and 50 period. (+)
• Risk gauges moved to risk on from risk-off last week, largely due to Gold and utilities lagging the benchmark index. (+)
• After a brief spike last week, Volatility pulled back down into bullish levels. (+)
• Growth leading putting in new highs in a bull phase with value also positive. (+)
• The modern family starting to give more consistent bullish readings with KRE, IWM, and IYT getting back to their 200-Day Moving Averages and Semiconductors pushing to new highs. (+)
• Emerging and developed markets all in bull phases with a new 52-week high in emerging markets, confirming a favorable environment for global equities. (+)
• With peace breaking out in the Middle East, gold and oil were down. A positive signal for equities. (+)
• The dollar made new lows, a positive for equities with money flowing into more speculative currencies. (+)
• Aggs broke down this week into a distribution phase showing posible disinflation with Copper breaking out to new multi-month highs. (+)
• Rates are stuck in a trading range though they eased a bit with indecision in the upcoming July Fed meeting. (+)
• July is one of the strongest seasonal periods for the market. (+)

Neutral

• Volume patterns are weak, especially in the leading indexes (SPY and QQQ). We are in the midst of a holiday season with Juneteenth and July 4th next week, so lighter volume might not signal as much. (=)