Consolidation or Failed Push Higher

It has been an interesting month and to be honest, the equity markets have been more consolidative than anything else. We know the constant theme of Fed Pivot is always on the buy and hold, higher prices for longer-types minds, yet markets have virtually gone nowhere.

For the better part of this month, the Nasdaq has basically pivoted around 13k and the SP500 around 4140. We have seen a clear preference for tech given all the AI push, but we believe that this is waning and the massive outperformance by the Nasdaq this year has stalled. This could also be why the markets haven gone much of anywhere because larger players are selling to retail who always chases a trend into the late innings. Here is the Nasdaq vs SP500 Futures chart. The Nasdaq contract at the highs was + $35k or so vs the SP500 contract but that has turned: