In recent reports, I've been mentioning the potential for heightened volatility and a market that could be a bit more reactive to day-to-day events and news items.

It seems that at least for the moment the buying frenzy in AI stocks may be cooling off, and that’s not such a bad thing since… 

It probably isn’t difficult to make the case that the market is somewhat overbought given the gains that we’ve seen since last October, and even since the beginning of this year. 

Yesterday’s big market rally featured technology, and more specifically, the AI stocks. We did see quite the enthusiastic buying… 

A forefront AI company delivering a huge earnings beat after yesterday’s close. 

Selling could become a bit contagious over the near term, that is as traders sense that the major market indices may be leveling off, or even rolling over a bit… 

The advanced decline lines among the major market indices have exhibited steadily improving trend lines since the October lows of last year. 

I think that there are increasing signs that we could see the market enter into a more extended consolidation than we’ve seen in a couple of months. This is not all bad, seeing how some of these aggressive growth stocks have… 

Logic would seem to dictate that some restraint might be warranted at this point. The Dow and S&P 500 both perched at new all-time highs. 

It’s Groundhog Day in Pennsylvania, but it’s anything but on Wall Street. The market continues to provide some exciting action here.