Headlines will suggest that the market closed “flat” yesterday, that it wasn’t a good session. There wasn’t panic, but investors were looking for signs that go beyond an overdone bounce.

That sign will have to come from Technology (XLK) earnings, which have a huge consensus and whisper numbers to beat, and even then there is no guarantee the names move higher. But the action is not an indictment of the underlying company or sector. There is so much gratification and move-maximization that feels wonderful when the market is moving higher, but becomes a serious issue on the downside.  The good news is these periods are, more often than not, temporary.

Holding stocks that are down is tough when you are unaware of the underlying fundamentals. It's frustrating when you know you own stocks that are undervalued.

VanEck Semiconductor ETF (SMH) needs to get back over the 50-day moving average on a closing basis to engender a turnaround.

Today’s Session

Watching the action in Technology (XLK), Industrials (XLI), and Materials (XLB) today and whether the momentum trade (SPMO) can get back on track.  Meanwhile, semiconductors (SOX) look strong-pre-open.

The semiconductor trade is crowded, and they have oversized influence on the broad market, but the value proposition is improving.

Retail investors sold semiconductor stocks in back-to-back sessions last week for only the ninth time in the past year, according to Citadel.  This is the kind of “buy signal” institutions are using because it points to emotions superseding fundamental trends. Moreover, it's been very effective.