Postcards: Grinding Higher

Bitcoin has collapsed to $60,000, and momentum remains Red despite the grinding of the Magnificent Seven higher. High caution.

Equity Storm Watch Is GREEN on the S&P 500 and RED on the Russell 2000

As the year's first half winds down, we begin the week with S&P futures lower, dragged down by Asian markets bracing for a possible Bank of Japan intervention as the yen nears 160 against the US dollar. This morning, the spotlight remains on Nvidia, which ended last week under pressure, falling nearly 10% since Thursday. The market will anxiously watch for a bounce as funds have loaded up and put all of their eggs in one basket--Nvidia. Brent and WTI opened lower in the oil sector but quickly rebounded, likely due to escalating geopolitical tensions around Yemen, which could strain supply. This week, traders will closely monitor earnings from FedEx (FDX) on Tuesday, Nike (NKE) and McCormick (MKC) on Thursday, and the Fed's preferred inflation metric, the PCE, on Friday.

I’ll repeat myself: It’s a negative environment if you take out the Top 7 stocks.

Money is pouring into the top because of indexing, but the rest of …