This is the kind of action that has to grab your attention.  The market, after Amazon (AMZN) failed out overnight and after several data points showing inflation, remains stubborn.

If this rally holds up going into the weekend and ahead of next week FOMC, it is time to start thinking of it differently. 

The key is wider participation beyond mega cap names.  Ironically, this earnings season has seen monster growth from typically stale names and sectors. 

Another curious factor today is the market’s reaction to the Fed’s report on the collapse of Silicon Valley Bank (SVB). 

https://www.wsj.com/articles/regulators-to-publish-postmortems-on-silicon-valley-bank-signature-failures-37abe07?mod=djemCentralBanksPro&tpl=cb

Earlier this morning, the Federal Reserve released its review of the events and mistakes that lead to the downfall of Silicon Valley Bank (SVB). Michael Barr, Fed's vice chair for supervision, who led the review and boiled down the collapse to four takeaways including:

• The Fed’s bureaucratic structure
• The company risk management failures
• Trump-era easing of rules for midsized banks 

And this opens the door for a tidal wave of new bank regulations. 

This is a huge cop-out I see that has to do with regulations.  Moreover, Silicon Valley Bank (SVB) had 31 open supervisory findings or warnings from regulators – why wasn’t any action taken?

But here’s the rub:

First Republic Bank (FRC) is getting hammered and has been halted again (almost 100 times since March) and yet the market is moving higher.  

The market is writing off a potential banking crisis that could spark more buying, but remember the market was hoping the bank crisis would stop the Fed from going too far.  It is always a double edge sword.