Midday market 05/23: Choppy sector rotation after PMI report

SPY continues to be rejected at 420, options traders focusing on the downside

Market starts a light correction day as tech and financial stocks give way to small caps and energy sector, pushing SPX below important breakout level 4200 and right at gamma flip level at QQQ~335 in the morning with most liquidity focusing on rotating out of interest rate sensitive stocks after services PMI report and new home sales in the morning.

After first 2 hours of open with SPY continuously rejected at Volatility Trigger point at 418, panic starts to appear and market has a pullback before finding support from QQQ at 335.