SPX Profit-Taking Pullback Pressure

"Sandisk and Western Digital had already delivered huge gains over the past year. Sandisk had jumped about 3,000% over 12 months, while Western Digital had gained more than 500%. That makes it easier for investors to lock in profits when earnings or forecasts disappoint."

"The bigger issue we see is the market has been playing musical chairs as money has sloshed from momentum, to value, and now back to momentum. At some point the music stops, and participants might not be able to find a chair."

"The S&P 500 dropped 0.8% and may be heading for its first back-to-back weekly loss since March."

"The early Thursday dip aligns with the cautious sentiment that had been building on Polymarket, where the July 16 contract implied only a 37% probability that the index would open higher — odds that had steadily declined throughout Wednesday's session"

"investors zoning in on the AI stock selloff, June's nonfarm payrolls miss, and the best quarter for the S&P 500 (SPX) since 2020"

"Despite relatively subdued levels in traditional volatility gauges, sharp moves in individual stocks and increasing dispersion across sectors suggest risks may be building beneath the surface."

"The brokerage said similar sharp Momentum rallies since 1980 had typically extended for another month before peaking and turning lower."

"Burry is convinced that conditions are building for a significant and broad reversal. And I’m convinced he’s going to be right."

"The broader takeaway is clear. After a powerful AI-driven rally, tech stocks are taking a breather as investors reassess growth expectations."

"Markets were stretched after the Nasdaq recorded a historic 13-day winning streak, its longest since 1992. Valuations were elevated, and traders were waiting for a trigger to lock in profits."