Happy Friday. The S&P 500 had a modest pullback today, down a little over 1% with SPY closing at 681.76, and honestly, it was all the usual stuff. Broadcom beat expectations but talked about thinner margins as competition heats up in the AI space. Add in slightly higher bond yields and some renewed hand-wringing about AI risk, and you have a pretty standard recipe for a down day. From a technical standpoint, it just looks like the market backing off resistance. Totally normal behavior.
Zooming out, valuations are still near the upper end of historical ranges, so a 1% move really isn’t a big deal. Attention now turns to next week’s heavy batch of data, while volatility remains surprisingly calm. Even so, this kind of environment continues to favor volatility-selling strategies, especially covered calls and cash-secured puts, which you know are some of my favorite tools when the market acts like this.
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