Currently, market focus remains heavily concentrated on NVIDIA, where a fierce battle is unfolding between bulls and bears around the critical $160 level. Should NVIDIA establish firm support above $160, short-sellers may be forced to cover, triggering a potential short squeeze rally. This would likely lift the broader semiconductor sector alongside it.Meanwhile, we are witnessing clear signs of sector rotation.

For example, the healthcare sector sold off sharply on Monday, only to rebound strongly on Tuesday—a typical behavior in a rotational environment as capital moves between sectors.From a macro perspective, there is little on the immediate horizon that could cause a broad market correction. With no major macro shocks expected in the near term, the indices may remain range-bound at elevated levels, marked by sectoral shifts.

All eyes will now be on the July 15 CPI data, which is likely to set the tone for the next significant market move. Current indicators point toward easing inflation pressures—last night’s release of June’s 1-year inflation expectations came in below forecasts, providing another layer of positive sentiment.

$NVIDIA(NVDA.US)