Last week, we finally got a dip, but it was over in just one day.

Every dip keeps getting bought. There’s still a ton of money on the sidelines. Many funds have missed the rally and are eager to get in. That’s why every pullback has been brief and shallow.

Not every correction has to come as a sharp drop. Sometimes the market “corrects” by moving sideways for weeks, letting time do the work.

So while I’d personally like to see a pullback to add new positions, we could just as easily see the market consolidating sideways before setting up the next big move.

A realistic scenario here is a consolidation from August through September, followed by a rally into what is historically the most bullish time of the year.

Institutions are still waiting to get in.

The chart below compares the dollar value of S&P 500 futures positioning from asset managers and hedge funds with the index itself. It shows the actual number of contracts held by each group.

This is a rough way to gauge where positioning stands and where it “should” be. If positioning matched the current S&P 500 level, it would be around $280 billion. Right now, it’s about $120 billion short of that.

This bull market hasn’t shown any real signs of weakness.

Internal market data isn’t pointing toward a slide either. The uptrend remains strong, with nearly 46% of S&P 500 stocks trading above both their 50-day and 200-day moving averages.

That’s a broad rally.

And 57% of S&P 500 stocks are above their 200-day average.

The main driver of this strength has been earnings.

• 83% of S&P 500 companies beat analyst expectations for Q2 2025.

• On average, earnings exceeded estimates by 7.1%.

• Technology led the way, with a 94% beat rate, a 7.8% surprise, and a +7.2% relative return.

• Consensus earnings per share have climbed from $62.49 to $65.67 — a 5.1%.

When companies are delivering results like this, it’s hard for macro concerns about rates, inflation, or trade to outweigh the underlying strength we’re seeing.

And the standout sector? Tech.

Earnings for tech stocks have been climbing almost vertically, while non-tech earnings have moved sideways.

Or to be more specific: it’s really all about AI.

Almost all of the outperformance came from sectors and stocks exposed to AI. Hardly surprising. I’ve been highlighting for a long time now.

Besides AI, we’re also seeing growing interest in thematic portfolios and theme stocks. Crypto has been a clear standout in July, with one of the largest ETF inflows in recent history.

So, if you haven’t already, make sure to check out the thematic Crypto portfolio.