The market came out the gate with a little more gusto than I expected, although it’s beginning to pullback and reflecting the fact there has to be some consolidation of the Trump Rally and chance to test weaker hands.   Stocks are once again trading hand and hand with crude oil, which is inching toward another major upside resistance point.  Oil traded above $55 for the first time in over a year and the energy sector is leading with consumer discretionary not far behind.

The Institute for Supply Management’s read on the service economy headline number of 57.2 beat the consensus of 55.4 along with a nice improvement from October’s 54.8 read.  Highlights of the report:

• 57.2 Headline
• 61.7 Activities
• 57.0 New Orders
• 58.2 Employment            

ISM Non-Manufacturing

The ISM report noted the following commodities in short supply:

• Avocados (2 months)
• Labor (14 months)

• Construction (8 months)
• Temp (3 months)

Is Tech Wreck Over?

The major indexes are up across the board today with the NASDAQ leading the way, up 1% at midday.  The NASDAQ is making a major rebound, picking up on Friday’s bounce after an upgrade of Google/Alphabet.   Market internals are strong with 70% advancers on the NYSE and 73% on the NASDAQ.  Up volume is 80% on the NYSE and 79% on the NASDAQ. Overall volume is good at 1.8B. 

I’m not sure the tech wreck is over, but I agree there are opportunities, particularly longer term.  However, there are near term questions over the impact of the new administration’s policies. There is a chance though that the major indices could close at a session high based on strong internals.