Learnings and conclusions from this week’s charts: $S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $E-mini S&P 500 - main 2603(ESmain)$ $NASDAQ(.IXIC)$ $Invesco QQQ(QQQ)$ $NASDAQ 100(NDX)$ $Dow Jones(.DJI)$
The “Presidential Cycle” points to a volatile and ranging 2026.
Global stocks have significantly outperformed vs US stocks this year.
Fund managers are running record low cash allocations.
Mid-Cap stocks look cheap in absolute and relative terms.
Rotation inflection points are emerging (US vs global, equal vs cap-weight).
Overall, it’s been a very interesting year so far on both the risk and return fronts, and there’s a few key inflection points in play that are going to be worth keeping close tabs on into 2026…
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