That was a fantastic finish on Friday - improbable, considering the 14^th largest bank in U.S. history was freefalling into the history books. And yet, Financials (XLF) were higher. In fact, there was a bottom-fishing tone to the session, with Energy (XLE), Real Estate (XLRE), and Materials (XLB) leading the way.

On Wednesday, it looked as though the market was on the precipice of slipping through a trapdoor. Yet, the resolve cannot be written off.

Bye - Bye, Bear

I’m not big on whether it’s a bull market or a bear market. But it resonates on Wall Street, and if there is a general epiphany that the bear market is over, it will create more urgency to be ‘long’. In fact, if Powell signals the rate hike on Wednesday is a Dovish Hike, then we could see panic buying.

If the Fed pauses, I hope there are no rate cuts this year, although if one comes in November, it wouldn’t signal economic destruction, which at this moment, is a distinct possibility.

Although the Federal Open Market Committee (FOMC) meeting is critical, lots of economic data will shape the week.

For now, the S&P 500 and the NASDAQ Composite are on the cusp of monster breakouts that could attract reluctant buyers.

Portfolio Approach

There are no changes to our Hotline Model Portfolio this morning.

Today’s Session

They say history doesn’t repeat, but it certainly rhymes. The drama over the weekend was not even a drop in the bucket to when James Pierpont Morgan had to rustle up bankers to save the economy. But the big news this week is another bank failure with JP Morgan coming to the rescue with the Federal Reserve.

JP Morgan shares higher in pre-open trading suggests they got a pretty good deal.  The market not being down big suggests the scare isn’t a crisis and could actually be ready to slowdown.  There could be a couple more banks lingering out there, but they will not be as large as First Republic, Silicon Valley and Signature.

Regional banks were edging higher late last week.  Resistance is clear, but the big test today is holding above the recent low.