Huge session for Health Care (XLV), which historically should have a strong second half of the year. The artificial intelligence (AI) trade is swinging back and forth more rapidly, which is driving the ups and downs in so-called adjacent sectors, like Industrials (XLI), Utilities (XLU), and Materials (XLB).

When momentum is scorching red, it means lots of pressure on major indices, but the fact of the matter is that 60% of stocks in the S&P 500, S&P 400, and S&P 600 were advancers.

Technical Test

The S&P 500 closed right at its 50-day moving average. The inability to hold could mean a pullback towards 7,000.

Conversely, a bounce would be encouraging, and a close above 7,600 would be a huge buy signal.

Today’s Session

Will the AI investment pay off?  The answer is absolutely. But the financial media campaign against the AI investment and trade won’t stop.

This morning, a bevy of hedge fund types were all over the financial media expressing concern about Technology (XLK) stocks. The past two weeks, they have been big sellers, so it stands to reason they would like to see the pressure continue.

That won’t be the case at the start of trading.