Last Friday saw two higher and eight lower sectors, resulting in the S&P 500 finishing unchanged.

The market finished higher and, at the same time, moved deeper into ‘fear’ because it's falling apart beneath the surface. That isn’t a cause for panic, but this is a unique period, and some things never change. Great companies eventually have great stock prices even if they are starving for oxygen.

A few fresh Technology (XLK) faces joined the party; Adobe (ADBE) and Netflix (NFLX).

What’s just as unique as a few stocks carrying the market is the carnage in other niches.

Breadth was an unmitigated disaster.

Technical View

According to the Relative Strength Index (RSI), the S&P 500 has entered short-term overbought territory. Still, until or unless the index dips below 5,200, the rally holds, even if it's one of the most deceiving rallies.

Today’s Session

The Empire Fed came in better than expected but still in the down channel and there was encouraging news on prices.

The market starts the week with lots of talk of Wall Street embracing the narrow rally but struggling to convince people to load up on stocks that have A) already run up big and B) dismisses the notion of diversification despite decades of saying it was the key to investing success.

It’s tough.

There are tons of significantly undervalued stocks in the market that will work at some point.