SignalPlus macro analysis: The U.S. stock market awaits corporate financial report data, and the momentum of the cryptocurrency market weakens

According to BLOCKBEATS, the geopolitical situation did not escalate further over the weekend, and risk markets rose across the board. Fixed-income investors opted to stay on the sidelines ahead of Friday's PCE data, the FOMC meeting eight days later and the SPX's busiest earnings week of the quarter. 44% of SPX companies will report earnings this week, including 5 of the "Magnificent 7."

With bonds selling off last week and stocks continuing to trade at fairly expensive all-time highs relative to fixed income, Wall Street believes investors remain comfortable with going long, with long positioning metrics set to reach 4-year highs and the SPX/Nasdaq short ratio set to reached a low in nearly 10 years.

However, last week's negative price action has done some technical damage to the stock, with SPX futures falling below the 55-day moving average and more than 5% away from the next 200-day moving average support. In terms of cryptocurrency, based on CME’s futures contracts, JPM believes that the BTC position is also overweight. ETFs have experienced capital outflows for two consecutive weeks, and the main liquidity has significantly weakened.