Market Outlook - The market structure suggests a potential 5% pullback to around 6100 on the S&P, offering a buying opportunity [2] - Cracks are appearing under the surface, particularly in consumer-focused names like transports, retail, and restaurant stocks [4] - Credit spreads are potentially too tight and may widen, correlating with weaker ISM employment data, suggesting risk in cyclical versus defensive trades [8][11][13] - Blowout earnings from megacaps like Meta and Microsoft haven't translated into sustained buying enthusiasm, indicating potential profit-taking [9][10] Sector Analysis - Semiconductors appear vulnerable, with software potentially outperforming them in August based on the last five years' performance [5] - Transportation stocks' underperformance hasn't significantly impacted the overall index [9] Risk Factors - A significant widening of credit spreads alongside a rising equity market would be a major concern, reminiscent of 2007 [12]