The market was impressive again yesterday, but it wasn’t easy. Individual stocks have shown an inability to hold onto gains this earnings season. Still, it was an impressive session. Anytime the S&P 500 can eke out a gain with Information Technology and Consumer Discretionary (XLY) in the, it's encouraging. 

The other intriguing issue is the change of guards, with small-caps outperforming. Specifically, small-cap growth is taking the lead.

Market Breadth

A “tooth and nail” battle is happening as both the New York Stock Exchange (NYSE) and the NASDAQ Composite saw more down than up volume.

Market Breadth	NYSE	NASDAQ
Advancers	1,585	2,068
Decliners	1,232	2,181
New Highs	210	156
New Lows	16	70
Up Volume	1.98 billion	2.52 billion
Down Volume	2.05 billion	2.50 billion

Chasing winners continues to be a hallmark of this phase of the rally. Hence, the swift shift from new highs to new lows.

Are These Things Plugged In?

Believe it or not, the market's emotional setting continues to be mired in fear. The question is, why?  It's easy to dismiss this gauge (I have done so in the past), but there is an uneasiness in the market, which sold off at the drop of a dime yesterday.

However, I have questions about initial jobless claims, which have been stuck for so long that I have a feeling they are not plugged in. If people are taking second jobs and side hustles to avoid meager unemployment checks, that is a sorry situation and decidedly not a sign of economic strength.

Don’t Charge It

March Consumer Credit missed the mark by a mile.

• $6.27 billion actual
• $15.00 billion consensus
• $14.12 billion February
• 1.5% annual rate of growth, 3.6% in February

What jumps out is there was only $152 million in revolving credit (mostly credit cards).

Consumer credit has declined significantly over the last few years, with interest now at 22.0%.

Plenty Left (if you want it)

Americans are sitting on $1.05 trillion in credit card debt, but $4.5 trillion is available. Just say “No.”

Higher rates for longer might only be the first ‘come to Jesus’ moment for Fed members - the next move might be having to hike rates. This is not a prediction, but it cannot be ruled out by any means.

Today’s Session

Quiet morning with more harsh reactions to financial results (especially revenue misses).  The vibe is edging toward flight but not panic.  There have been overreactions that test the resolve of investors (or those that claim to be investors).  Traditional safe havens are working, but that doesn’t bode well for the broader market.  The S&P 500 must clear 5,200 to attract sustained buying. 

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