I would prefer market breadth improving, especially through RSP and IWM. After seven consecutive sessions of semiconductor weakness, I think capital rotation into small caps and equal-weight stocks could offer opportunities beyond the usual mega-cap tech names. Falling Treasury yields would also help ease valuation pressure, although I would want confirmation that the trend is sustainable.
I would still keep an eye on AI-related ETFs like SMH and DRAM, as I remain bullish on the long-term AI and semiconductor themes. However, I would avoid chasing the rebound and prefer gradual accumulation when technical signals improve. For me, the key is not predicting every Fed move, but managing risk, diversifying, and staying disciplined when market sentiment shifts.
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