IBM beat Wall Street estimates for second-quarter revenue and profit on Wednesday, but lower-than-expected sales in its mainstay software segment overshadowed a renewal in demand for the mainframe business spurred by AI upgrades.

One blip on IBM’s results sheet was software revenue, which increased 10%, to $7.39 billion, in the quarter, but fell short of the Street’s $7.43 billion target. On the other hand, IBM’s hybrid cloud revenue, which includes sales from Red Hat, grew by 16%, just ahead of estimates.

Today's bear gap has IBM dropping to its lowest levels since mid-May, moving sharply away from its June 25 record high of $296.16. The 150-day moving average looks like it will move in as support for today's pullback,