Early Selloff Fades – Software Still Hurting, Metals Slip

Market Overview - Major indexes opened lower, with technology stocks leading the decline due to ongoing fears that AI tools may replace industry-specific software [1][2] - Software stocks, including Meta Platforms, Nvidia, and Palantir, each dipped around 1%, while Salesforce fell 2% and Autodesk slid 3%, contributing to a year-to-date decline of 22% for the iShares Expanded Tech-Software ETF (IGV) [2] - The S&P 500 experienced its second consecutive losing week, with the Dow and S&P logging their fourth down week in the last five, and the Nasdaq extending its losing streak to five weeks, the longest since 2022 [2][3] Market Dynamics - Despite early losses, indexes managed to close slightly positive, aided by a softer tone regarding Iran and reduced trading activity due to the Lunar New Year in China and U.S. traders returning from a long weekend [3] - Software stocks continued to face pressure, while mega-cap stocks showed some resilience despite rising bond yields [4] - The dollar ended flat, gold prices fell below $5,000, and Bitcoin initially surged but retreated to around $68,000 [4] Trend Tracking Indexes (TTIs) - The domestic Trend Tracking Index (TTI) is currently at +8.06% above its moving average, with a "Buy" signal effective from May 20, 2025 [10] - The International TTI stands at +12.00% above its moving average, with a "Buy" signal effective from May 8, 2025 [10] - The TTIs have remained stable despite market fluctuations, only giving up a small fraction while staying in positive territory [9]