On Friday's close, I noticed a pretty interesting detail.

SPY (Figure 1) suddenly had a wick in the last minute, briefly hitting around 716 at the lowest, but at the same time, the SPX index did not see a similar low.
Why is that?
I think the most likely reason is quarter-end rebalancing.
Many large institutions, pension funds, and index funds tend to execute their rebalancing trades in the last few minutes of the close, especially placing orders at 3:59 and completing them all at once through the closing auction at 4:00. ETFs are the most direct tool for executing these capital flows.
Therefore, during quarter-end rebalancing, it's easier for us to see SPY have a notable long wick in the last minute, while SPX does not fully sync. This is because SPY is a traded ETF that is directly affected by large institutional buy/sell orders, MOC (Market-On-Close) orders, and market maker hedging, whereas SPX is just an index calculated from 500 component stocks and will not show the exact same movement due to large ETF trades in the final minute.
So, I currently do not interpret this wick as a true technical breakdown; I tend to see it as a temporary deviation caused by quarter-end rebalancing combined with end-of-day liquidity.
Additionally, I think this short-term correction is almost over,
because sentiment indicators have started to enter relatively extreme territory.
First, the CNN Fear & Greed Index has returned to 25, re-entering the E Extreme Fear zone.
Second, on Friday, June 26, the Put/Call Ratio reached a high of 1.12. For comparison, during the most fearful market sentiment on March 30 this year, the Put/Call Ratio peaked at only 1.07.
In other words, investors' sentiment of buying protective puts this time is even stronger than during the rapid correction at the end of March.
Historically, when the market simultaneously sees the Fear & Greed entering Extreme Fear and the Put/Call Ratio surging, with everyone generally worried about further declines, it means a significant portion of panic has already been released.
Of course, this does not mean the index will definitely rebound tomorrow, nor does it mean it won't continue to fall. On Monday and Tuesday, because pension rebalancing is not yet over, I think it will dip a bit more and that's it – S&P looks at 7290-7300, Q looks at 696-700 (Figure 2).
But when the technical selling pressure from quarter-end rebalancing gradually dissipates, and market sentiment has already reached the extreme fear zone, I will pay more attention to risk-reward. As long as the AI main theme is not disproven, I will continue to gradually allocate according to my plan in the AI infrastructure direction that I am long-term bullish on.