I’ve said it before, and I’ll repeat it: For all the hopes for broader market participation, when it's time to save the day or reboot the rally, it comes back to growth in general and Technology (XLK) in particular.

When those big boxes and rectangles are green, the S&P 500 is generally higher.

55 & Counting

There are now 55 new closing highs in the year as the S&P 500 is lifting off a great point that was once resistance and has been held as support.

Market Breadth

Yesterday, all the action was in the NASDAQ Composite and small-caps, which is interesting, considering all the calls on the Street for moves into large-cap quality. The NASDAQ leaped out of the gate and never looked back.

Market Breadth	NYSE	NASDAQ
Advancers	1,303	2,390
Decliners	1,493	1,934
New Highs	131	226
New Lows	32	87
Up Volume	1.36 billion	3.13 billion
Down Volume	1.93 billion	2.27 billion

Small-Caps

Large-cap growth led the way, but there were more pockets in small-caps that moved higher, although the iShares Russell 2000 ETF (IWM) has now gone 769 consecutive days since it last established an all-time high.

The Russell 2000 has followed the script. It's made an impressive move, but a breakout on strong volume is the ultimate buy signal.

The Fed Still Our Friend

Late in the session, Fed Governor Christopher Waller indicated he was leaning toward a rate cut and that current policy is “still restrictive.”

The Federal Open Market Committee (FOMC) is in a dicey situation. Still, it looks as if they have chosen a path and need significant proof that inflation is turning higher and not just momentarily stalling.

Interestingly, everyone on the Street thinks the jobs report will come in higher than the consensus – of everyone on the Street (what a racket).

Waller’s comments moved the needle on the likelihood of a rate cut this month and lifted the likelihood in subsequent months.

Economic Data

Today begins an avalanche of economic data that should heavily influence day-to-day action in the market:

Today’s Session

Data on consumer shopping is coming in and the main theme is that folks are willing to spend if they feel they are getting bargains.

Amazon (AMZN)

"We know how much our customers appreciate saving money, and our customers saved billions with us during this year’s holiday shopping event,” said Doug Herrington, CEO, Worldwide Amazon Stores

Square (SQ)

“With over 1 in 3 shoppers more stressed about holiday shopping this year compared to last, customers all around the world turned out in droves for the mega discounting weekend to save on gifts, shopping both online and in-store and driving increased sales.”

Lots of data ahead this morning.

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