Yesterday, only 23% of the components in the S&P 500 (SPX) finished in the plus column. Technology (XLK) was higher, with both software (IGV) and semiconductors enjoying gains, and Consumer Discretionary (XLY) eked out a gain as well. Large-cap momentum was the only factor that closed higher.

Equal Pain

Equal-weight S&P 500 (RSP) is on the cusp of a seventh consecutive losing week. This has only happened twice in more than three decades (the bear markets of 2002 and 2022).

Coming into the week, I was most interested in two things. One was buyers moving beyond tech. Equal Weight against the S&P 500 is extremely oversold – the last two times it got to this point, there was a sharp rebound.

Micron Delivers

Micron Technology (MU) crushed it!  This was the week's most important development:

The company’s Strategic Customer Agreements (SCAs) have locked in more than $30.0 billion through 2030, which is 35% of revenue.

For those expecting this memory demand to be short-lived, humanoid robots will soon trigger “significant demand.”

Today’s Session

We are going to come out of the gate with some gusto, which is important because even the names that have acted well keep stalling at key resistance points.

Meanwhile, retail investors remain bearish, which Wall Street considers a “buy signal.”  I think it's prudent but also worry about all the selling over the past few weeks in what could be the near-term bottom.