I didn’t see that coming. Housing stocks surged on earnings that some described as “solid.” Until now, most of the industry's action has centered on potential consolidation. This is one of those instances where the charts gave buy signals before the fundamental story bolstered the “value proposition.”

Who Needs Tech?

Well, yesterday, the market rallied with a sizable pullback in Technology (XLK) – that’s the good news. The gain was only +0.06% - that’s the bad news if you are watching the market through the lens of the overall S&P 500 (SPX).

The much-maligned Health Care (XLV) Sector staged the most significant gains on the session, providing further evidence of increased interest in bottom fishing.

Broadening Rally

The big red squares and rectangles weighed on the overall market, but market breadth was impressive.  This is a classic rotation.

Advancers

• S&P 500: 81%
• S&P 600: 75%
• NASDAQ Composite: 59%
• NYSE: 71%

Market Breadth	NYSE	NASDAQ
Advancers	1,983	2,934
Decliners	786	1,566
New Highs	75	121
New Lows	16	38
Up Volume	3.22 billion	6.35 billion
Down Volume	1.10 billion	3.09 billion

Small But Mighty

Great table from Duality Research, which pointed out the session last week that saw the most significant gain on the smallest number of advancers in history. Yesterday was the smallest gain with the biggest breadth.

The Chips Were Down

Semiconductor names took a breather, but for those accustomed to daily gains, it felt more ominous. It's not, but there is no denying that when the market pulls back, even to consolidate gains, there could be outsized declines in the hottest niche of the market.

After the close, President Trump announced a major tariff deal with the “Land of the Rising Sun.” which includes a $500 billion investment in the United States.

Today’s Session

The market is looking to get out the gate with some pep as trade anxiety fades, and economic optimism increases – at least from the market’s point of view.  The White House will also nudge AI even more.

The Power Grid & Stock Market

Utilities (XLU) are poised to move higher as electricity demand is sending prices soaring.

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