Breadth Improves as SPY Falls – Yield Spreads Remain Narrow – 10yr Trends Higher

Today’s report will focus on the Mag7 ETF and Semiconductors ($MAGS, $SOXX, $SMH). Hyperscalers drive AI spending and semiconductors are the main beneficiary. MAGS shows relative weakness and the semiconductor ETFs are extremely stretched. Keep in mind that semiconductors account for 48% of the Technology SPDR and tech accounts for 37.26% of SPY.