Yesterday’s market action saw a shift in momentum across various sectors, particularly in the tech and consumer spaces. The MS S&T volume indicator showed a gain of 3% versus its 20-day moving average, while cash desk activity was observed to be 1.1 times better for sales. However, the iShares Russell 2000 ETF (IWM) underperformed the S&P 500 Index for the first time in 2026, indicating a potential change in investor sentiment.

Software stocks continued to display strength, with momentum down around 4.5% over the past three days. This was particularly evident in the technology, financials, and consumer sectors, where buying pressure was most pronounced. Interestingly, retail demand was observed to be particularly strong during the afternoon session, with net retail demand reaching $2.8 billion – a notable 96th percentile for this time of day.

Futures trading also provided insight into investor sentiment, with an estimated $1.25 billion in net notional value traded on the offer side (66th percentile). While this level of activity may seem modest, it highlights the ongoing interest in certain stocks and sectors despite the recent downturn in tech momentum.

Overall, yesterday’s market action suggests a potential shift in investor sentiment, with some segments of the market experiencing increased demand while others struggle to maintain momentum. As always, it’s important to stay informed and adapt your investment strategies accordingly to ensure continued success in these dynamic markets.