The S&P 500 held its regular session lows on Thursday, and just rose after the opening bell on Friday. Those intraday pullbacks were only good enough for quick intraday gains, especially as it became clear that the Nasdaq’s leadership was starting to diminish (I mean intraday) – a sign of a widening trading range as the S&P 500 is still making intraday highs.
After breaking the level of 6,850 (reaching it for the first time in the pre-sale provided one of the short selling opportunities – only after the opening bell was the level broken), the market was consolidating under 6,889 – and this level was also overcome in the last half of the session.
Semis and discretionary products sold off at the closing bell – unlike the Nasdaq or biotech or small caps, which is a good enough sign because the message of the entire last week is that the Santa Claus rally could enter its opening phase over the next two short weeks – it’s time to show institutions that they have 2025 winners in their portfolio after all (hello NVDA is up nearly 4% on the day – I was clear that we were finally going to have a good day at ORCL, and that’s even more important for technology as such at this time current). Volatility metrics dropped, and Wednesday’s one-way flow was completely erased.
That should have come as a shock to the Bank of Japan – have you seen how the yen has fallen since then? It looks like the stock market is taking a significant turn on Friday.
-1766355400100-1766355400103.png&w=1536&q=95)
