The AI trade hit a patch of turbulence on Nov. 5, with technology-heavy ETFs absorbing a sharp bout of selling. The Invesco QQQ Trust ($QQQ) fell 4.39% to $661.58 as of 10:20 a.m. EST, while the SPDR S&P 500 ETF Trust ($SPY) traded at $746.84, down 2.60%, as of 10:38 a.m. EST.

Those numbers turn the market’s attention from futuristic AI promise to the concrete question underneath it: how quickly should data centers be built, and what happens if investors begin to doubt the pace or returns of that spending? For short-term traders, the Nasdaq-100’s 28,100 support level and 28,800–29,000 resistance zone now provide the chart’s most visible signposts.

The market’s AI enthusiasm meets a reality check

AI spending has become one of the defining investment narratives in US markets. But Thursday’s decline suggests that the narrative is no longer moving in a straight line. As recent analysis of the Nasdaq-100’s struggle indicates, investors are taking a more cautious view of the relationship between massive technology investment and the returns that may eventually follow.

That distinction matters. The market can support ambitious capital expenditure when it sees a clear path from spending to durable growth. It may become less forgiving when the buildout itself becomes the story, while the economic payoff remains further down the road. The result is a sharper focus on whether hyperscalers need to expand data-center capacity at the same pace—or whether a slower schedule could ultimately be welcomed.

QQQ’s 4.39% decline, coupled with its “Strong Sell” daily technical gauge, gives that debate a distinctly market-based edge. This is not simply a discussion about technology policy or infrastructure. It is now appearing in the price action of a major Nasdaq-focused ETF. SPY’s 2.60% decline shows that the pressure reached beyond the technology-heavy corner of the market, although the day’s move places particular emphasis on the AI complex.

Nasdaq-100 levels become the near-term map

For traders watching the next move, 28,100 is the key Nasdaq-100 support level identified in the current setup. Support is not a promise that selling will stop there; it is a level where the market may reveal whether buyers are willing to step in or whether caution is still spreading.

Above the market, resistance sits in the 28,800–29,000 range. A recovery toward that band could test whether Thursday’s decline was a sharp reset or the beginning of a broader reassessment. Failure to regain that area may leave the index operating under a heavier technical cloud, particularly if concerns about AI spending continue to shape sentiment.

The levels create a simple battlefield: 28,100 below, 28,800–29,000 above, and a large question mark in between. Price action around those zones may offer a clearer read on investor conviction than broad declarations about the future of AI.

Data-center backlash adds a new signal

The spending debate is also colliding with local politics. Measures curbing data-center construction are on track to pass in 40 of 41 local votes. That result adds an unusual but important layer to the market story: communities appear increasingly prepared to push back against the pace of data-center development.

For investors, the significance is not limited to permitting. The votes may signal that a slower buildout pace is becoming more acceptable—or even desirable—to parts of the market. If spending moderates, investors may welcome greater discipline around capital expenditure. At the same time, any slowdown could keep pressure on mega-cap technology stocks if markets interpret it as evidence that AI infrastructure demand is cooling.

That tension is the heart of Thursday’s move. A slower buildout could ease concerns about an unchecked spending cycle, but it could also challenge the growth assumptions supporting the technology-heavy market. Until the Nasdaq-100 shows whether 28,100 can hold or whether resistance at 28,800–29,000 comes back into view, the AI trade may remain caught between ambition and arithmetic.