Even on sluggish days, it feels like a foregone conclusion that the stock market will rally to close higher because it feels like the same mega-cap names and growth sectors will lead the way.

But the guessing game on what sectors emerge with eventual rotation takes a different turn each session.

Yesterday, we were reminded that Consumer Staples (XLP) might have defensive qualities and offensive qualities.

Pricing power is critical, and the ability to hold it even during recessions makes this an interesting sector.  Material (XLB) names showed a pulse. I like this sector in 2024.

Market Breadth

Breadth was a lot more impressive than one might have imagined, considering the early indecision of the session.

• Up volume swamped the down volume
• News highs surged above new lows

Heat Map

The Heat Map continues to paint a picture of strength led by the market's largest, most powerful names.

There is an autopilot feel to all of this, but it's also something to remember when the inevitable down days seem automatic, too.

Transportation

The Dow Transportation Average Index (DJT) needs to get in gear to confirm the rally.

Today’s Session

Earnings and a weaker dollar are fueling this morning’s moves. The S&P 500 set a new record high driven by Netflix (NFLX) results, which reported much better-than-anticipated numbers. The Street is playing catch up with the stock as 18 firms – including JPMorgan and Goldman Sachs – raised their price targets.

The company saw its best customer gain since the pandemic, and it all indicates it is winning the so called “streaming wars” against media peers like Disney+, Amazon Prime and Paramount+.