A fresh breakdown from StockedUp explains why today’s market felt worse than the numbers showed — and why tomorrow could be dangerous.
About 55% of stocks closed green, yet major index-heavy names sold off. That split matters. When leadership stocks fall, indexes look weak even if the average stock holds up. This kind of divergence often leads to chop and traps traders on both sides.
Tech weakness wasn’t random. New AI tools automating legal and research work reignited fears that high-margin service businesses could be disrupted faster than expected. Several data and “trust” names dropped hard as the market quickly repriced that risk.
Positioning adds another layer of danger. Fund managers are running with very little downside protection, near multi-year lows. When hedging is this light, even small shocks can force fast selling.
Geopolitics also moved the tape. Middle East headlines pushed oil higher, tightening financial conditions and accelerating rotation away from high-multiple tech into defensives.
Technically, SPY rejected resistance again and is sitting just above key support near 684–685.
If that level breaks, downside toward 676 opens up.
If it holds, a sharp squeeze higher can punish shorts.
With ISM Services PMI, earnings volatility, and crowded positioning, tomorrow is built for whipsaws, not clean trends.
