🐺 Market Highs, Broadcom Strength, and Setups Ahead

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The market keeps pressing higher, but under the surface we’re starting to see conditions that could line up into a very attractive setup. For premium subscribers, this is exactly the type of backdrop we watch closely… strong momentum, stretched positioning, and rotations beneath the surface that can turn into opportunity.

SP500 NEW ATH, SENTIMENT OFF-SIDE

The $SPX ( ▲ 0.83% )  S&P 500 closed at a new all-time high, now up more than 10% YTD despite a sharp 23% intraday drawdown earlier this year. The move underscores just how resilient this market has been, grinding higher even as earnings have been mixed and macro conditions remain uncertain. Momentum has kept buyers engaged, and dips have been shallow.

But sentiment is starting to lean heavy. The NAAIM exposure index shows fund managers are pushing their allocations to the long side, while the CNN Fear & Greed Index has drifted into “Greed” territory. Positioning feels off-sides, which doesn’t necessarily end the bull market, but it does set up conditions where any negative catalyst could trigger sharper swings.

Sentiment is growing with $UNH ( ▲ 0.81% ) as the defensive rotation continues on. Even Leverage Shares 2x UNH ETF $UNHG ( ▲ 1.84% ) is up over 5% in the last 5 trading days.

BROADCOM EARNINGS… SEMIS STILL STRONG

Broadcom $AVGO ( ▲ 1.23% ) delivered another quarter that highlights how much AI infrastructure is driving the semiconductor cycle. Revenue came in at $15.95B (+22% YoY), beating expectations, with adjusted EPS of $1.69 topping the Street’s $1.66 estimate. More importantly, AI revenue surged 63% YoY to $5.2B, and management guided to $6.2B in Q4, pointing to accelerating demand. Guidance for $17.4B in total Q4 revenue also topped consensus, underscoring confidence that AI orders are not slowing.

$NVDA ( ▲ 0.61% ) may dominate the narrative with GPUs, but Broadcom is proving that the next leg of AI growth will be carried by the infrastructure around the chips. Its custom ASIC designs, networking hardware, and silicon solutions are embedding Broadcom deep inside the AI supply chain. This is less about chasing hype and more about building the backbone of compute at scale. For investors, the message is clear… the semiconductor leadership baton isn’t passing, it’s widening, and suppliers like $AVGO ( ▲ 1.23% ) are essential runners in this race.

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