Goldman mid-day wrap Key Focus: SPX grinds back to unchanged and currently holding the 50dma (7707) as the tape broadens out with 355 names in the green (S&P ex AI: SPXXAI +135bps). RTY notably outperforming SPX and seeing its second largest dispersion since July. AI Basket (GSTMTAIP) -270bps and currently -12% over the past 7 sessions while Quality (GSP1QUAL) +55bps and +15% over the last month. Strong defensive tilt to the tape: Discretionary (GSXUCOND) +300bps, Health Care (GSXUHLTH) +225bps, Communications (GSXUCOMS) +200bps, Staples (GSXUSTAP) +190bps, and Financials (GSXUFINA) +135bps all seeing +1.5std moves. Broadening out causing pain under the hood as HF VIP Long/Short Pair (GSTHVIPP) -115bps and -10% since the start of the drawdown on Oct8th. Yesterday, Global AI stocks (GSXGGLAI constituents) collectively saw the second largest net selling in the past year after July (-2.8 Z score), driven by long-and-short sales 3.5 to 1 (GS PB). Our GS sentiment indicator has been negative for 6 straight weeks and last reading was its lowest at -1.3 (as of Friday). Aka overall length is not max long. The AI trade is still long, but now a 6 out 10 in terms of length and much cleaner than it was in Jun/July. Our flows were the busiest they've been all week to start in TMT and have since slowed. We have now net sold -$10.5bn in TMT in the past 6 sessions. (ty Sharkey) Liquidity: Exchange volumes are explosive +45% vs 20d avg, while SPX volumes +37% vs 20d avg. ETFs tracking at 31% of the tape with top of book liquidity $8.3mm on the touch.