Yesterday seemed like a lackluster session, clouded by the drumbeats of war, but against that backdrop, with most stocks in retreat, there was still a sense of market resolve that was at once impressive and very encouraging. Tyson Foods (TSN) led the way, but artificial intelligence (AI)-influenced names dominated the list: Micron Technology (MU), Sandisk (SNDK), Oracle (ORCL), Constellation Energy (CEG), and there was a smattering of bottom-fishing, as investors continue to kick the tires on select software (IGV) names.

Heat Map & Market Breadth

Only 30% of the S&P 500 traded higher, as higher crude oil and bond yields caused increased trepidation. The software patch saw the most green on the screen.

The IGV Software ETF closed right at a significant resistance point. A breakout would attract both hot-money buyers and value investors.

Decliners outpaced advancers on the New York Stock Exchange (NYSE) and NASDAQ, and overall volume was light. New highs edged out new lows.

Factors

Large Cap Momentum and Growth were virtually unchanged on the session. Small-caps gave up the most ground but have been sizzling, so I think it was mostly profit-taking.

After the close, Palantir Technologies (PLTR) posted a monster quarter, and the stock barely nudged higher.

Today’s Session

Semiconductors (SMH) continue to lead. SMH has been “overbought” for a month (don’t take the bait).

Bitcoin (BTC) has come on quietly, and Strategy (MSTR) reports after the bell. We could see a parabolic move.