Markets hit new highs with strong momentum but show early signs of weakness amid tech earnings.

Last week, major stock indexes reached fresh highs driven by strong market breadth, leadership, and declining volatility, maintaining a risk-on environment with only slight overextension. However, some underlying weaknesses began to emerge, particularly highlighted by earnings reports from big tech companies. MarketGauge experts emphasize a methodical, data-driven approach to trading, cautioning against passive strategies and highlighting the importance of risk management. These developments suggest cautious optimism as investors navigate evolving market dynamics and sector rotations.