I think everyone was bracing for a harsher outcome during yesterday's session. It was a bifurcated market, but that’s been a key characteristic for months – the lack of correlation, or negative correlation, which sees advancers and decliners revolve around each other like orbiting suns.

Software (IGV) shone yesterday, while semiconductors struggled (see table), and soon it will flip.

Tech Gets Dirt Cheap

Not only did Technology (XLK) post remarkable earnings, but the sector offered the most robust guidance of any by far.

Tech needs chips, which are sitting on the wrong side of the 50-day moving average. A close above 13,000 for the Semiconductor Index (SOX) is probably the technical catalyst to power a retest of the all-time high.

The Fed in Focus

There is a greater than 95% chance of a rate hike tomorrow, and yet I wouldn’t be surprised if they hold pat.

Be that as it may, the real action will be in the Summary of Economic Projections.

Clarity Act

The odds of the Clarity Act finally passing have improved after a White House compromise. I think stablecoins will play a major role in our economy, so this would be a huge step in the right direction.