It was a monster session.  It was so good that the bears found all kinds of historic parallels to past market tops.  But I think it’s a mistake to ignore the velocity of the rebound of the past four days.   The fact of the matter is that the market sold off on exogenous factors rather than fundamentals.  The irony is the fundamental argument for being in the market strengthened in July.

The S&P 500 powered to a record high as investors rushed into growth names and bailed on the comfort of traditional haven sectors.

Something For Everyone

Momentum is back in the driver's seat, and growth is building traction.  I’m also impressed with quality catching a bid.

Early in the session, small caps took the lead, but the argument for owning large cap based on valuations lured more buyers as the session progressed.

Momentum (SPMO) is right at the 50-day moving average, and the RSI suggests there is plenty of upside potential.

 

Spreading the Wealth

Market breadth was bullish, but there has to be a large percentage of advancers to start thinking about “breadth thrusts.”

The pendulum swing in new highs to lows is encouraging, especially on the NASDAQ Composite.  The main storyline for the NDX up 945 bps in four sessions is reflected in up-to-down volume on the NASDAQ.

An almost 5-to-1 up-to-down volume ratio is the result of pent-up demand and major relief.

“Greed for lack of a better word…”

Greed is back after two months mired in fear and extreme fear.

But not out of the woods in chips as the semiconductors (SMH) is still under the 50-day moving average.

SpaceXAI (SPCX) beat the street, but the stock is giving up gains from the prior two sessions. The initial focus is a problem on sending, but that development is helping Nvidia (NVDA), which won a major exclusive.

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