OpenAI GPT-6 Astra was the biggest news of the week and played a major role in Friday’s session for top-to-bottom performers. Software (IGV) wobbled again, including Snowflake Inc. (SNOW), which soared on earnings.

More Upside

The big moves in Technology (XLK) names on Friday could be the start of major upside, as they’ve been down a lot over the past three months.

Memory and semiconductors are still oversold, especially given recent earnings and guidance news.

The broad market could meander with the Consumer Price Index (CPI) report looming large, as a make-or-break for a Fed rate hike this month.

Small-Caps

Breadth was ugly for the S&P 500 (SPX), but 63% of the S&P 600 (SML) advanced.

The uptrend in the S&P 600 remains intact.

Today’s Session

The trading session after Labor Day is usually lower, although I’m not sure why.  Without a doubt, everyone is back, although many must drop the kids off for the first day of school – there should be pockets of intriguing action.

The session starts off with dark clouds from the latest Middle East development.  Crude is higher on reports of attacks on Saudi Arabian oil infrastructure.  These headlines obscure great progress in moving more ships through the Strait.

Frustration

There has never been a less correlated market, which means stocks are often down when they should be higher.  Moreover, only a handful of sectors move higher, and others move lower, often interchangeable throughout the week.

This morning the S&P 500 will open lower while the NASDAQ Composite wants to surge.

Meanwhile, the AI trade is oversold and underappreciated.  I think that is changing with Astra and soon-to-IPO Anthropic and OpenAI, which will underscore the value proposition for investors.

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