Likely to see swift revision lower in semi-AI trade, says BTIG's Jonathan Krinsky

• The S&P 500 is 8% above its 50-day moving average, but only 49% of its components are above their own 50-day moving averages, the fewest in 30 years.
• While the S&P 500 hit a 52-week high, 8% of S&P names are at 52-week lows, tying a record from late 1999, indicating a lack of broad market participation.
• Only Technology, REITs, and Energy sectors have exceeded their spring highs, with the equal-weighted S&P 500 failing to make new highs.
• Krinsky believes the market is in the 'later innings' of the semi-AI trade and expects a 'swift reversion lower' for these leading names, with a potential 25% drawdown for the semiconductor index to its 50-day moving average.

Jonathan Krinsky of BTIG discusses the extreme concentration in the current market rally, primarily driven by a few tech and AI/semiconductor stocks. He highlights historical parallels to the late 1990s and suggests that a 'catch-down' or swift reversion lower for the leading tech names is likely, rather than the broader market catching up.