Wall Street Braces for 'Violent' July Momentum Unwind After Stellar H1
- MarketWatch flags a cluster of red flags — stretched valuations, narrow breadth and crowded AI/semiconductor longs — that point to a sharp rotation this month (https://www.marketwatch.com/story/why-the-stock-markets-red-hot-momentum-trade-might-be-headed-for-a-violent-unwind-this-month-78a45397).
- The Invesco S&P 500 Momentum ETF (SPMO) and chip ETFs have already sold off in the first sessions of July, even as strategists cited by Yahoo Finance still see more H2 upside (https://finance.yahoo.com/markets/article/its-a-bull-market-wall-street-sees-more-upside-in-stocks-for-the-second-half-of-2026-120220657.html).
- The setup mirrors classic late-cycle momentum cracks: long-vol crowding, sentiment at extremes, and a soft June jobs print that complicates the Fed's path.