Well, the session has stuck to the script I outlined this morning, with growth and defensive stocks rocking and those tied to stronger domestic economic growth struggling. Those cyclical sectors are lower, even though ISM Manufacturing came in better than expected and Construction spending exceeded consensus.  I will have more details on both in the morning report, but I think the fly in the ointment came from employment sliding to contraction from expansion.

Crude Oil is another intriguing thing. Inventory dropped considerably, yet West Texas Intermediate (WTI) is unable to break out and energy stocks are mostly spinning their wheels.

WTI

Value

At this point, value has also come to represent any stock that’s not already at an all-time high.  With that logic, there are lots of names to choose from, and the index that looks most attractive is the Russell 2000.

The Russell 2000 has been ranged bound for months, but buyers are showing up. I sense deep pocketed investors have been accumulating for the last two weeks knowing a breakout could trigger a stampede of additional buying.

Russell 2000