U.S. large-cap stocks, particularly those within the S&P 500, exhibit strong performance and a positive market outlook as we move into 2026. Technology and energy sectors are noted for their resilience, driven by developments in AI and favorable market conditions. Despite some fluctuations, equities are anticipated to gain traction, largely supported by a recovering economy and favorable monetary policies. However, concerns linger regarding the potential downturn of major indices amidst uncertainty. 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 -0.3 is modestly bearish. The market sentiment at 0.9 is 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.There is no clear direction for SPY since trend sentiment and market sentiment are at the opposite directions. The positive sentiment force for sector is at 1, and the negative at -0.1 on 2026-01-04. The forces of Asset Sentiment (4.1), Option Sentiment (0), and Price Level Sentiment (0) will drive up the price. The forces of and Asset Price Trend (-0.3) 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
2026-01-04	1%(1.3%)					-0.3	-0.08%		1			4.1	0
2026-01-03	1%(1.9%)					-0.3	-0.04%		1.2			5	-6
2026-01-02	1%(1.7%)	683.21	47	0.2%	0.18%	-0.3	-0.04%	0.3%	0.9	Wait	50%	5.1	4
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
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.