The U.S. stock market has shown significant momentum, particularly with the S&P 500 reaching record highs and strong investor sentiment. Large-cap stocks are critical drivers behind this performance, reflecting optimism for continued growth into 2026. However, there are emerging concerns regarding valuations in sectors like artificial intelligence, which could impact overall market stability. Despite some uncertainties, the overall outlook remains positive with expectations of robust returns. The price action of U.S. Large Cap (SPY) asset class is shaped by numerous forces, ranging from broad macroeconomic trends to asset-specific performance and market structure. The trend sentiment at 0.1 is modestly bullish. The market sentiment at 1.3 is very bullish. Trend sentiment measures the current trend of the stock price, and market sentiment reflects what market participants collectively think where the price will move next.SPY is likely to move up since both trend sentiment and market sentiment are positive. The positive sentiment force for sector is at 1.3, and the negative at 0 on 2026-01-01. The forces of Asset Sentiment (5.1), Asset Price Trend (0.1), Option Sentiment (0), and Price Level Sentiment (0) will drive up the price. The forces of and Price Level Sentiment (0) will drive down the price. The sentiment for Asset Price Trend is calculated based on SPY trend. The sentiment for Option Speculation is calculated from put/call ratio. Price Level sentiment is positive when oversold, and negative when overbought. Asset Sentiment scores are extracted from headlines and market commentary. All sentiment scores are normalized on a -10 - +10 scale. The price level reaches 100 at Bollinger upper band, and zero at lower band.

SPY
Date	Attention	Price	Price Level	Change	SMA10 Trend	Trend Sentiment	Hourly Trend	Hourly StdDev	Market Sentiment	Action	P	Asset Sentiment	News Sentiment
2026-01-01	2%(1.9%)					0.1	-0.04%		1.3			5.1	4.7
2025-12-31	2%(1.6%)	681.86	40	-0.74%	0.04%	0.1	-0.04%	0.3%	1	Wait	50%	5.2	7.3
2025-12-30	1%(2%)	686.95	67	-0.13%	0.07%	0.2	-0.03%	0.2%	1.3	Wait	50%	6	2.8
2025-12-29	1%(2%)	687.85	73	-0.35%	0.1%	0.2	-0.01%	0.2%	1.2	Wait	50%	5.8	1.5
2025-12-28	5%(2%)					0.6	0.03%		1.5			5.7	4.6
2025-12-27	0%(1.4%)					0.6	0.03%		1.4			5.5	0
2025-12-26	2%(1.6%)	690.24	88	-0.02%	0.01%	0.6	0.03%	0.2%	1.1	Wait	50%	5.6	3.7
2025-12-25	0%(1.6%)					0.7	0.04%		1.5			5.5	0
2025-12-24	5%(1.7%)	690.38	95	0.35%	0.04%	0.7	0.04%	0.3%	1	Wait	50%	5	6.1
2025-12-23	1%(1.1%)	687.94	85	0.47%	0.07%	0.4	0.06%	0.4%	0.7	Wait	50%	3.9	6.2
Wait action is recommended in three scenarios with either high uncertainty or high risk: 1. The trend sentiment and market sentiment are at the opposite directions. 2. Both trend sentiment and market sentiment are positive, but the price level is elevated. 3. Both trend sentiment and market sentiment are negative, but the price level is depressed. In an uptrend, as an investor, you may want to wait for the pullback to open long position. In a downtrend, the price will likely rebound after huge decline. As an investor, you may want to wait for the rebound to exit long position.
Market sentiment will accelerate the current trend when both trend sentiment and market sentiment are at the same direction. Market sentiment will generate volatility when it's at the opposite direction of the trend sentiment. News sentiment measures the daily emotion of the market. News sentiment may impact the daily price change while market sentiment is a more stable and consistent moving force.