Market breadth is deteriorating (only 22% of SPX stocks participating), yet indices (NDX, RUT, SPX) are extremely extended, hitting Fibonacci targets. Despite this, the prevailing advice is to remain bullish but with strictly defined risk, as pullbacks are seen as buying opportunities. Strong earnings (20%+ SPX, 100%+ NVDA) and analyst revisions are supporting the rally, but concentration in tech (energy, utilities, tech sectors only) raises historical parallels to market tops (e.g., 1999). Specific stock ideas like Rocket Lab, Bloom Energy, and optical names (Ciena, Ubiquiti) are favored for their non-extended nature and defined risk profiles.
Yields
explicit
Oil
Metals
USD
Navellier & Associates
4.2
Wealth Manager
Louis Navellier 7.5
Wealth Manager
Louis Navellier 7.5
5/10/2026 5:00:22 PM
ndx
Stay bullish, be sure to define your risk. I don't want to keep anybody from getting bullish just because we're extended.
NDX has met both targets and is very extended, but she advises staying bullish with defined risk rather than turning bearish.
rut
IWM same story, we're very extended here. We've met the first target extension off that 30th of March low. The second one is at 291.
Extended but still has upside target, consistent with overall bullish but cautious stance.
Earnings season strongest in 20+ years, led by tech/energy/utilities. Data center backlogs huge (Bloom Energy orders 2x sales, 3-year visibility). Micron expected to be grand finale with memory shortage pricing power. Valuations reasonable (Palantir ~17x fwd earnings). However, caution on near-term seasonality: August/September historically weak. Favorite bargains: Ciena, Ubiquiti (optical pullbacks).
Yields
implicit
RUT
Oil
Metals
USD
Navellier & Associates
4.2
Wealth Manager
Louis Navellier 7.0
Wealth Manager
Louis Navellier 7.0
5/10/2026 5:00:22 PM
ndx
Strong earnings, reasonable valuations, but expects seasonal weakness in summer. Overall bullish on tech fundamentals but cautious on near-term seasonality.