Market Thoughts - 6 Jul 26

SPX got off to a good start off the open. Across momentum, we are seeing some amount of relief rally. However, popular momentum names opened weak even relative to their sector. For example, in neos, $NBIS was underperforming the entire sector, in memory $SNDK was trading extremely heavy as well. While other momo names in their sectors are able to gap up and do a relief rally, the overweight positioning in those names is keeping a lid on them at the moment as weak hands sell into the relief. I would expect this PA to ease off later on.
We also had news that Situational Awareness expressed interest to be an anchor investor for $SKHY debut on the nasdaq. While this will allow the entire memory sector to rerate, in the short term, it puts some amount of pressure on $MU as $MU stops being the only game in town. Given the overweight on $MU in most people's portfolios, i would expect this drag to be quite heavy.
Again, this week has a relatively light calendar with $SKHY listing being the highlight.
Good luck!