The market bounced around all session long yesterday, and just as it appeared to be gaining its sea legs, it fell through a trapdoor—something that’s become a habit—on a huge spike in volume.

Overall, the slight volume made it easier to move the market around, but I’m still not sure what spooked it. This skittishness can morph into something more debilitating for the market, which is how the year began.

Conversely, we need the fertile ground of skittishness and fear to build the next foundation for the next big move.

It doesn’t matter how wild and unnerving these sessions are as long as the S&P 500 (SPX) holds above its 200-day moving average. When the index turns higher, keep an eye on the rate of change ROC) and money flow index (MFI) indicators - they should turn higher.

Mag Seven Poised to Charge

I’m digging the tape action in “Mag Seven.” Next week, all eyes will be on Nvidia (NVDA). Meanwhile, the Roundhill Big Tech ETF (MAGS) chart looks especially delicious.                                        

I know there is a strong desire to see the rally broaden and new leadership emerge, but no leadership could be as convincing or have the coattails of the “Mag Seven.”

The summer needs AI/Technology (XLK) leadership, more trade deals, and clear signs that the Fed is ready to become accommodative.

Power Push

After the close, Elon Musk commented on the need for power, which caused everything associated with nuclear power to rocket higher.

It’s going to be a fun ride.

You’re Back!

Retail investors were buying through the darkest times of 2025, even when they had a pit in their stomachs. The record for a streak of bearishness was shattered.

Of course, now the “smart” money will be more than convinced their short positions will pan out.

Today’s Session

Different Kind of Put

The market was under pressure this morning after President Trump sent a shot across the bow of the European Union, and its negotiators, who continue to believe they can deal with the tariff situation with old-school laborious stall tactics.

President Trump took a shot at Apple (AAPL), demanding that it make their phones in the United States.

Some of this is what Scott Bessent calls “strategic uncertainty,” as US and EU representatives are set to talk later today.

There is this notion on Wall Street, and in the financial media, that President Trump was corralled by market movements, especially from the bond market.

To make these demands, when even the most minor incremental in yields send the stock market lower, means the White House is serious about spreading wealth to Main Street.

Comments

I believe what spooked the market is the House passage of the BBB which increases the Debt Ceiling by 4 Trillion Dollars. There should be plenty of room to drop spending to pre-pandemic levels and not advance our debt higher. The cost of managing the onslaught of immigrants IS Immense and will take time, especially with Judicial interference. But we MUST reduce spending to AT LEAST pre-pandemic levels. P. Krueger on 5/23/2025 11:14:37 AM

Tweet

 

Home | Products & Services | Education | In The Media | Help | About Us | Disclaimer | Privacy Policy | Terms of Use | All Rights Reserved.