August 5, 2026

By Nigam Arora

To gain an edge, this is what you need to know today.

Extreme Positive Sentiment

Please click here for a chart of S&P 500 ETF (SPY) which represents the benchmark stock market index S&P 500 (SPX).

Note the following:

•  The chart shows that only five days ago the stock market touched the top band of zone 2 (support).
• The chart shows that since touching zone 2, the stock market has staged a strong rally, driving it to a new high.
• RSI on the chart shows the stock market is now overbought.  Overbought markets tend to be vulnerable.
• The chart shows there is buying in the early trade.