Why Did The Market Bounce Today? Today the market bounced for 2 reasons....
1. Broadcom NASDAQ:AVGO received news of another OPENAI partnership. This multi year billion dollar deal caused the stock to bounce double digits. When this name rallies it causes liquidity to flow into the $SOXX. Semiconductors are still the heartbeat of this market and have propped everything up today.
The OPENAI headline seems to be running out of steam as the last 3 partnership announcements caused 3 stock to make new highs but AVGO did not take out its highs. This will be on watch.
2. The bond market was closed today allowing investors to not have to worry about catalysts or yields. There's an old saying on "when the cats away, the mice will play" .
The bond market is the much larger investment market aka the "cat" and this liquidity has clearly spilled over into smaller cap higher beta stocks.
Tomorrow we will see if the markets can take out the 20 day Moving average or if this pop gets sold into.
