In our Monday market wrap note we pointed out that while stocks eaked out modest gains, some turbulence was forming below the surface where the momentum trade was rapidly taking on water.
Fast forward to this morning, when Goldman tech specialist Peter Callahan echoes the same warning, writing in a note (available to pro subs) that on one hand, the Nasdaq remains in melt-up mode, rising on 6 of the 7 days, on continued trade optimism (day 2 of US/China trade talks), better than feared macro (latest = better US NFIB data of 98.8 vs 95.8 in Apr) and strong corporate results (Taiwan Semi up >2% today on strong May revs) which in turn has helped push the Goldman US Financial Conditions Index (FCI) to YTD lows (easier).
