It had to happen at some point, but it was still shocking that yesterday the market closed lower. Overall trends are primarily pointing higher, but now, the Russell 2000 (IWM) sees red arrows in the short-term and mid-term.

The market is stuck in steady optimism with a hint of anxiety.

Not Bearish But Cautious

Bear sentiment continued to ebb, but bullishness didn’t move as investors returned to the neutral zone.

Nvidia Paradox

Eight of eleven sectors finished higher on the S&P 500, but Technology (XLK) offset it yesterday, which took it on the chin.

 I’m calling it the Nvidia (NVDA) Paradox.

Large-Cap Still Rules

Large-cap value edged higher, while small-cap growth declined the most.

Fresh Tech

Four Tech names were among the biggest gainers, including oversold household names (Advanced Micro Devices (AMD) and Salesforce (CRM)).

Today’s Session

Economic data from Europe points to a continued slowdown, which should excite investors looking for the ECB to continue cutting rates.

Global Composite PMI	June	May
EU	50.8	52.2
UK	51.7	53.0
Germany	50.6	52.4
France	48.2	48.9

Meanwhile, there is $5.1 trillion of option notional expiring today.

The real test for the market is whether buyers will step up to buy weakness into the close.

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