Analyst Commentary:

• The S&P 500 gained 0.13% over the past week. The spread between the forward P/E and trailing 12-month P/E currently sits at 7, the highest since 2021, reflecting elevated investor expectations for future earnings growth.

• Despite the recent market rebound, single‑stock volatility remains elevated. The spread between average S&P 500 stock volatility and index volatility (VIX) reached its widest level since at least 2010, signaling higher risk of a spike in index volatility.

• The rolling one-year spread between growth and defensive sectors is nearing all-time highs, underscoring the sharp improvement of growth areas as investors continue to rotate decisively into higher-beta segments.

• The Technology sector, as represented by XLK, has risen 33% so far in the second quarter. This rapid advance has driven the sector’s weekly overbought levels above 140%, reaching its highest level since the inception of XLK in 1999.

• After lagging the S&P 500 Equal Weight Index early in 2026, the cap-weighted index rebounded, outperforming by nearly 5% over the past 30 days, placing it in rare territory historically and signaling a return to cap-weight leadership.

Nasdaq Dorsey Wright’s Weekly Featured Chart:

 To read more on volatility, you can read Wednesday's featured article HERE.

Major US Index Technical Review:

A summary of the performance of major indices, in addition to their Point & Figure information. 

The Group Score Minute:

Senior Equity Specialist Steve Raymond dives into the latest trends and changes within our Asset Class Group Scores. To listen now, click HERE.

Nasdaq Dorsey Wright Products:

The Invesco Dorsey Wright Momentum ETF (PDP) seeks to provide exposure to U.S. equities that exhibit strong relative strength and momentum characteristics. The Fund is based on the Dorsey Wright® Technical Leaders Index, which uses a systematic, rules‑based methodology designed to identify securities demonstrating powerful price momentum relative to their peers. PDP is rebalanced periodically to reflect changing leadership trends, aiming to keep the portfolio aligned with areas of the market exhibiting the strongest momentum. To learn more about PDP, Click HERE.

Want More? Don't Miss Out on Our Podcasts!

This week, Miles Clark and Joseph Tuzzolo discuss historical market P/E valuations, frequently asked momentum questions, Nvidia and semiconductors. To listen now, click HERE or on the image below. 

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