Market breadth in rut futures remains healthy, with advancing small-cap stocks outnumbering decliners 1.3-to- Ever since Kevin Feige confirmed that the MCU was getting a reboot (or, in his words, a “reset”) after Avengers: Secret Wars , fans have been wondering if Marvel is simply giving up on its famous cinematic universe and starting over because they’ve run out of stories to tell. While that may be true, it’s nothing new: the blunt truth is that Marvel is in a creative rut that has lasted for a quarter of a century. And it all goes back to the Ultimates line of comics that simultaneously helped launch the MCU and predicted its doom. While futures may look attractive technically, is the index attractive fundamentally? For this, I turn first to an earnings analysis.  While the results are not as positive as the S&P 500, there were positive surprises on both sales and earnings in the latest period. If one looks at the lower left, they can see that positive surprises on both are not the norm. However, over the last four quarters, the results are getting better and better. One should then ask – what may be driving improved results? It is likely not AI capex spend, which is driving S&P 500 earnings surprises. However, there are several other potential drivers of earnings in this quarter, but potentially moving forward as well. If we recall back to the post-election move higher in Russell 2000, the narrative surrounded rate cuts, lower taxes‌ and lower regulations. We saw the extension of the Tax Cut and Jobs Act, making lower taxes permanent for companies. The administration has worked to lower regulations in each agency, but maybe most importantly for smaller banks, which could free up capital for smaller companies. Finally, the market is pricing rate cuts to begin at the September FOMC meeting. Will we now see this narrative get fulfilled entirely? Is this the impetus for the move higher in the NFIB Optimism Index? Will Russell 2000 futures follow? Forward-looking models incorporating PMI data indicate rut futures could test the 2,080 area by mid-month, contingent on no escalation in geopolitical risk.