Aleksandra Jensen @RainbirdFx: "Good afternoon, ladies and gentlemen Wall..."

Denmark

Good afternoon, ladies and gentlemen Wall Street remains visibly nervous — and this time the stress is showing up in price action as much as in headlines. The pressure has been most pronounced in software stocks, which saw another sharp selloff as investors reassessed the idea that AI may not just enhance productivity, but actively disrupt traditional software business models. That narrative triggered a global unwind across software names, spilling from the US into Europe and Asia. The fear is simple but powerful: if AI automates what software used to sell, revenue assumptions fall — and valuations follow. What makes this more than just a sector rotation is the financing backdrop. Many software companies are heavily supported by private credit providers, often the same institutions funding data centers and AI infrastructure. If software revenues weaken materially, credit risk doesn’t stay isolated — it migrates. Importantly, this is not a surprise development. I flagged this risk scenario already in late December and early January, precisely because stretched valuations, concentrated positioning, and rising leverage tend to create unstable market conditions. That preparation is why my positioning and exposure have remained deliberate and risk-controlled, rather than reactive. Technically, the selling has reached extremes. The major software ETF is now deeply oversold, with RSI readings below 20 and the highest trading volume in years — conditions historically associated with panic rather than fundamentals-driven repricing. That doesn’t mean the market must bounce immediately, but it does mean risk is no longer one-sided. Index Levels – A Pause, Not a Panic The $NSDQ100 captured this uncertainty well. It pushed up to 25,910 during the European session before reversing sharply, dropping to 25,100 later in the day. Buyers then stepped back in, and the index has since stabilized around 25,310. Support: ~25,100 Next support if that breaks: 24,850–24,900 Resistance: 25,800–25,900 The $SPX500 followed a similar pattern. The index failed to break 7,000, rolled over with tech, and fell to 6,860 before rebounding to around 6,925. Support: 6,850–6,860 Resistance: 6,980–7,000 In simple terms, both indices are consolidating. From here, the market could move higher or lower depending on earnings and macro signals — which is exactly why discipline matters more than predictions. Rotation, Earnings & Discipline Defensive stocks surged during the selloff, pushing Consumer Staples to extremely stretched levels. Historically, such defensive overcrowding has not lasted and often precedes rotation back into oversold growth sectors once panic subsides. Earnings are now the deciding factor. Recent reports showed that even solid results can lead to selloffs if expectations were too high — a clear reminder that valuation still matters, even in AI-driven markets. Bottom line: This phase is uncomfortable — especially for newer investors — but it is also manageable. Volatility does not equal chaos if risk is sized properly. The goal isn’t to predict every move, but to stay solvent, flexible, and prepared while markets digest excesses. Clear & Simple Recap – Especially for Newer Copiers If you’re feeling a bit lost right now, that’s normal — markets are confusing even for professionals. Here’s what matters most: This volatility was flagged weeks ago, not a shock event Positions are sized with strict money management, not emotion NASDAQ support: 25,100 | resistance: 25,800–25,900 S&P 500 support: 6,850–6,860 | resistance: 6,980–7,000 Big moves don’t mean you must act — doing nothing is often a position The focus right now is risk control first, opportunity second Markets go through phases like this regularly. Those who survive them with discipline are the ones who benefit when clarity returns. A Note to My Copiers I want to be very clear about one thing: this phase was not unexpected. I already highlighted the risk of exactly this kind of volatility back in late December / early January, which is why exposure and position sizing have been kept deliberate and disciplined. I don’t see the current environment as a problem — I see it as a setup. Volatile phases like this are where opportunities are created, not destroyed, as long as money management comes first. The goal is not to react emotionally to every move, but to stay patient, flexible, and ready while the market works through excesses. I wish you all a nice and profitable day ahead, and all the best A $NVDA (NVIDIA Corporation) $TSLA (Tesla Motors, Inc.) $AMD (Advanced Micro Devices Inc) www.breakingthenews.net/Article/US-futures-rise-ahead-of-big-tech-earnings/65603931