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The Setup For A Summer Correction Is Building | Lance Roberts

Adam Taggart | Thoughtful Money® May 19, 2026

Summary

Market breadth is weakening as only a handful of mega-cap tech and semiconductor stocks drive the current rally.

Momentum is slowing with overbought conditions flashing caution signals due to mechanical hedging flows and forced buying.

A 5-10% summer correction is increasingly realistic as market positioning grows stretched and fragile.