I must admit, I’m a little disappointed with yesterday’s session. All the pieces were in place for a move higher, maybe tickle 4,600. Instead, several rally attempts fizzled on the vine. I continue to worry that the inability to break out very soon could trigger a move that fills that big downside gap (blue).

It was a big move into old-school safe haven (Utilities, XLU), but the action in Industrials (XLI) was very compelling.

Breadth improved from the prior session, but those mega=cap names in red sealed the market’s fate. Or, I should say, ‘doomed the market.’

The list of biggest decliners saw lots of oil producer names.

I still think the sharp retreat in oil is a negative sign for the economy. I’m not sure we can have a soft landing for the economy if crude oil is experiencing a hard landing.

I found this online, and it’s an eye-opener – the Street loaded up oil stocks this year, which was a no-brainer.  

Today’s Session

Initial jobless claims came in fractionally higher than consensus and continuing claim fractionally below consensus.

Interestingly, equity futures are pointing higher on the news, especially the NASDAQ Composite where AI news and developments continue to be the powerpack that moves the needle.

The rotation story is great and there are signs it is happening, but the biggest stock market story is AI and the Magnificent Seven.