Renewed pressure preceded the allowed-for rebound efforts, and likely will return, but per expectations, not quite yet. Much is clearly pending for S&P in the next few weeks, well beyond Nvidia's report (Thursday) or the Chairman Powell speech at the Jackson Hole Conference (Powell speaks Friday).

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On top of that, for stocks we follow, semiconductors are rebounding, and you have AEHR Test System's (AEHR) participating in Needham 'virtual' analyst now (on Tuesday) Conference, then next week at a Jefferies Investment Bank 'tech' Conference, which is more significant and on the 29th. I believe. AEHR 'built' some resistance in the mid-40's, so it might take news to overcome that.

Elsewhere, little controversial and speculative SoundHound (SOUN) caught a bid, as well as it 'could' benefit if Nvidia focuses more on AI in Thursday guidance (I have no idea of details, but Nvidia (NVDA), Samsung and others were early investors in SOUN, we don't know if later they retained any shares or have other plans).

Additionally, Oil stocks remain in-flux at the higher range for Oil we looked for, which was 75-85. The lower demand from China is not particularly an effect. It is however subject to swings in the Dollar or geopolitical events such as Iran. I mentioned it in a midday comment, after Iran confronted a US Navy warship.

In-sum: 

It's amusing to hear pundits say the 'market is wrong by rallying' on Monday. It's not wrong, it was the idea after a brief dip, because short-sellers were very active again, and that's why I pointed-out the Put-Call ratio Friday.

There is no miscarriage of justice, as some say. Rather the miscarriage was a persistent extreme valuation in a handful of mega-caps, that came down just somewhat, are rebounding now, but probably will still be rocky in September.

Some talk about 'abandoning Apple' for-instance. I pointed out last week it's not a great buy, but neither would it plunge based on slowing sales, which is just normal in the summer before a new model. (iPhone 15 likely September 12 or so.). Again, the psychosis is from those not allowing this ebb-and-flow.

The United States needs to not push rates so high that they create the wreck they purport to prevent, and not leave it for salvage like China's Xi is doing to his Country (that clearly is reason enough to continue limited disengagement, not provocations, to avoid a wounded dragon lashing-out to go-out flaming).

Some of these stocks got hammered and may go lower later-on. That's even why I noted this morning data showing heavier 'short-selling' in ETF's. In my noon comment (just as a dip was reversing from down-to-up) I highlighted the prospects for recovery and mentioned the error by those shorting the SOX or Semiconductors in-general, as I thought they'd rebound, at least for now.

That of course leaves open a reaction to Nvidia in a couple days, but we're not there yet, and there is too much focus on that stock, 'as if' it nearly alone, was determinant of what happens to the market. It's not, though it matters.

There's no sense to overweigh the interest rate discussions, we've pointed all of it out, and emphasized undervalue and under-appreciated stocks, which for sure not all will come back, but they are essentially pre-crashed situations.

As to 'yield', you know I think the Fed was late to the game in stopping cutting a couple years ago, and then tried to make-up for lost time by excessive fast series of hikes. Not just markets, but the U.S. economy, is not geared for such radical shifts from overstayed policies in one direction or the other. That's why I don't fight the Fed, but I can be mad at the Fed, for predictable excess, and in either policy direction.

Bottom-line: 

Not much new has happened. China is struggling but tensions in the Persian Gulf are rising, hence Oil prices are holding together even if Asian demand 'may' be constrained. S&P bounced and is now slightly over 4400 as no surprise given our expectation of a post-Expiration brief dip, then rally.

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