Technical Indicator Summary The S&P 500’s daily RSI is overbought (>70) while the Russell 2000’s daily RSI remains in neutral territory (>30 and <70). Technical Review The June S&P 500 inched +0.18% higher on Friday to settle @ 7595.75. Hedgeye’s risk range on Friday’s session was 7615 at the top and 7372 at the bottom (red lines on the chart above). There are three volatility regimes: 1) the investible bucket (VIX < 19), 2) the chop bucket, (VIX = > 19 and < 29), and 3) the F-bucket (VIX > 29). The VIX finished Friday’s session near 15.70. Option dealer gamma remains in positive mode as of Friday’s close. When option dealer gamma is positive, option dealers mechanically BUY weakness and SELL strength to hedge their exposure. Positive gamma for option dealers increases the odds of LOWER realized volatility and SMALLER percentage moves up or down from one day to the next. Market Outlook Friday’s month-end mark-up kept the S&P 500’s winning streak alive at 7 consecutive winning sessions. The June S&P 500’s daily RSI remains overbought (>70) suggesting that a short-term pullback could happen at any time. Coming into Friday’s session, the downside versus upside in the Hedgeye risk range was nearly 9:1. Option dealer gamma is also in extreme positive territory which is another sign of the S&P 500’s overbought condition within its bullish trend. Interesting dates to mark on your calendar include: • June 10 – May CPI report, another hot inflation report could pull forward rate hike expectations • June 12 – SpaceX IPO looks to raise $75 billion for a $1.5T to $2.0T valuation. Do other securities need to be sold to make room for SpaceX shares? According to the CME’s FedWatch Tool, rate markets are saying that the most likely date for a rate hike (odds > 50%) is no sooner than the January 27, 2027 FOMC meeting.

Technical Indicator Summary The S&P 500’s daily RSI is overbought (>70) while the Russell 2000’s daily RSI remains in neutral territory (>30 and <70). Technical Review The June S&P 500 gained +0.55% on Thursday to settle @ 7581.75. Hedgeye’s risk range on Thursday’s session was 7589 at the top and 7370 at the bottom (red lines on the chart above). There are three volatility regimes: 1) the investible bucket (VIX < 19), 2) the chop bucket, (VIX = > 19 and < 29), and 3) the F-bucket (VIX > 29). The VIX finished Thursday’s session near 15.70. Option dealer gamma remains in positive mode as of Thursday’s close. When option dealer gamma is positive, option dealers mechanically BUY weakness and SELL strength to hedge their exposure. Positive gamma for option dealers increases the odds of LOWER realized volatility and SMALLER percentage moves up or down from one day to the next. Market Outlook The S&P 500 started Thursday’s session in the red before another US/Iran peace deal headline hit the tape, sending the June S&P 500 to the top of its daily Hedgeye risk range. The VIX fell below 16 which perpetuated Thursday’s rally despite contradictory peace deal headlines. Front-month oil prices ended the day near unchanged despite another week of sharp oil stock declines. For now, US equity markets are acting like the Strait of Hormuz does not matter or that it will soon open to tanker traffic and energy prices will return to pre-war levels. In the last two hours of Thursday’s session, we got an apparent response to the earlier peace deal headlines that US equity markets ignored into the close. Followed by… In the short-run, the S&P 500’s daily RSI is overbought. The most obvious catalyst for a minor pullback, would be a renewed rally in energy prices. Interesting dates to mark on your calendar include: • June 10 – May CPI report, another hot inflation report could pull forward rate hike expectations • June 12 – SpaceX IPO looks to raise $75 billion for a $1.5T to $2.0T valuation. Do other securities need to be sold to make room for SpaceX shares? According to the CME’s FedWatch Tool, rate markets are saying that the most likely date for a rate hike (odds > 50%) is no sooner than the January 27, 2027 FOMC meeting.

Technical Indicator Summary The S&P 500’s daily RSI is overbought (>70) while the Russell 2000’s daily RSI remains in neutral territory (>30 and <70). Technical Review The June S&P 500 rose fractionally on Wednesday to settle @ 7540.00. Hedgeye’s risk range on Wednesday’s session was 7567 at the top and 7372 at the bottom (red lines on the chart above). Option dealer gamma remains in positive mode as of Wednesday’s close. When option dealer gamma is positive, option dealers mechanically BUY weakness and SELL strength to hedge their exposure. Positive gamma for option dealers increases the odds of LOWER realized volatility and SMALLER percentage moves up or down from one day to the next. Market Outlook For the second day in a row, the S&P 500 failed at the top of Hedgeye’s daily risk range. The S&P 500’s daily RSI is now overbought (>70) and also exhibits a short-term bearish divergence from the S&P 500. As a result, another dip within the context of the bullish trend would not be a surprise in the days ahead. All in all, Wednesday’s session was a great example of positive gamma conditions where rallies are sold and dips are bought, resulting in greater volatility compression and price mean reversion. While the S&P 500 is short-term overbought, a VIX with a 16 handle is bullish. Interesting dates to mark on your calendar include: • June 10 – May CPI report, another hot inflation report could pull forward rate hike expectations • June 12 – SpaceX IPO looks to raise $75 billion for a $1.5T to $2.0T valuation. Do other securities need to be sold to make room for SpaceX shares? According to the CME’s FedWatch Tool, rate markets are saying that the most likely date for a rate hike (odds > 50%) is the January 27, 2027 FOMC meeting.