watching some of these markets, stocks mostly higher, but some pronounced weakness in semiconductors.

The SMH down almost 3% this morning, Dells down, a number of chip names like Sandisk, Western Didge,

Mike Cron, our senior markets commentator Mike Santoli is here to maybe take a crack at the spread

between what the SMH is doing and the overall mass.

Yeah, I mean, I think the riptide warnings are out on the beach again, and you have a three and a half percent drop

in the S&P 500 with the majority of stocks higher. There's been this unprecedented run of days

when either the headline indexes or semis are up, and the majority of stocks are down and vice versa.

So what it does tell you is treacherous rotation, day-by-day kind of confidence check on the AI

hardware food chain.

It's all down today.

I do think that the market continues to tell us in different ways that the bar is punitively

high on AI hardware earnings reactions.

From going back to Micron, Micron's $300 bucks below where it was right before the earnings

at its highs, through to Taiwan semi, and then today to ASML.

ASML's not down much, but it was indicated higher earlier, and the rest of the semi-cap equipment makers are down.

Now, you have Mag 7 up, so there's always something to rotate into in this market.

Dispersion continues to make new highs, which means stocks going their own way,

keeps the VIX in line, which tells systematic funds they can take on more risk.

This cycle's been working to keep the S&P 500 near the old highs.

I still think there's a little bit of risk for slippage in there in that process,

but we haven't really seen it hit yet.

What's working today also is consumer discretionary up sharply.

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