Michael Batnick

All of the AI winners, really, Dell, Western Dig, Micron, you name it, they got smacked.

And you know what?

It's okay.

I think it's okay.

It was definitely a needed little slap on the wrist.

What was interesting about the sell-off is that

I did see, despite there being a lot of deep dark red on the screen and the big names, the big winners, there was also a lot of green.

So I asked ChartKid, I said, hey, I think something's funny going on.

Why don't you throw up a scatterplot?

So he did, and sure enough, there was a huge outlier.

So what we're looking at on this scatterplot is the one-day return on the y-axis, okay?

And on the x-axis is the percentage of stocks advancing.

And this follows a pretty tight pattern for the most part.

where the best of days, right?

You have 4%, basically every stock participates.

You're down 5%, basically every stock is red, okay?

On June 5th, the index was down 2.6%.

But we've really never seen anything like this because 48% of the index was actually positive.

And what you saw on Friday and what we're going to talk about today, or what happened today, is rotation.

Money went to different areas.