US session thoughts - 9 jun 26


We had extremely good bounces across single names to enter the US session. Yesterday's recovery also pushed alot of bids into the semiconductor space. However, given the vol shock on friday, i would expect longs to start trimming exposure here (very good levels) - which in itself is going to kick start another sell off tonight much like friday's. Again, nothing fundamentally has changed. Just flows doing its thing!
SPX would expect a retest of the lows made on friday - which is not that far away - just 75 points.
Across the weaker complexes like nuclear, neoclouds, these did not participate broadly in the recovery and i would expect new local lows to be made in these names tonight if weakness continues!
While these moves may feel large, it is worth taking them into context that it is well within the bounds of a normal chopsolidation. Except that we have a ton of levered products in the space that magnifies moves in both direction - creating these temporal flows.
Good luck!
SPX-2.07%
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