It was a tough session to cap off a very difficult week, although the S&P 500 (SPX) benefited from sector rotation out of growth, especially Technology (XLK) and Communication Services (XLC); Energy (XLE), Utilities (XLU), and Materials (XLB) are such tiny sectors that they couldn't offset the hits to mega-cap names. Meanwhile, the Fear Index (VIX) spiked by 22%.

Breadth was good in the S&P 500 this week; even on Friday, 50% of names traded higher.

NASDAQ & NASDAQ-100

The NASDAQ Composite and NASDAQ-100 (NDX) enjoyed a monumental rally, and it's hard to see how the last couple of weeks were a problem. But the individual damage is huge, and nerves are frayed. These drawdowns have been major buying opportunities, and I think that will continue. Buyers plowed into Consumer Staples (XLP) and Health Care (XLV), which is better than the headlines suggest.

There was a lot of talk over the weekend that today will be another Black Monday. I was a broker 39 years ago and thought my short career was over. It wasn't over, and I learned from my clients to buy when the crowds rush for the exits.

Today’s Session

Last Monday, Australian cloud company Firmus announced it was postponing its IPO, triggering a ripple that played a major role in the selling tsunami in many superintelligence stocks.

A similar story is playing out this morning with reports that Microsoft (MSFT) is pulling out of an Nscale project in London. The issue here, however, isn’t financing or public opposition – it's power delays.  It could mean trouble for Nscale’s plan: a $35.0 billion IPO, which many suggest should be $16.0 billion. 

I’m cool with cutting these overpriced IPOs down before they rip off the public.

The good news is that, unlike last time when news stories and speculation ran amok, people see this news as what it is, not as an indictment of the superintelligence revolution.