Yesterday, Cleveland Fed President Loretta Mester created an air pocket in the middle of the session by answering questions about current and future Fed policy on Bloomberg Television. The line that tells the story most is: “We can hold rates, or even raise them, if inflation, against expectations, stalls out or reverses.” But the market is in ‘Greed’ mode, so the dip was short-lived.

It's all about the chips.

Tech (XLK) is back in the driver’s seat because the chips are on fire.

VanEck Vectors Semiconductor ETF (SMH) is on the verge of smashing through a double top, this could be a powerful buy signal this week.

Breadth

It's all about old folks, young millennials on cruise ships, and everyone else waiting for Nvidia (NVDA).

Breadth was just about even across the board, but up volume dwarfed down volume on the NASDAQ Composite.

Market Breadth	NYSE	NASDAQ
Advancers	1,405	2,079
Decliners	1,383	2,126
New Highs	239	224
New Lows	29	101
Up Volume	1.63 billion	4.97 billion
Down Volume	1.74 billion	1.87 billion

 

Growth!

 

Today’s Session

Another major firm has lifted its target on the S&P 500.  Deutsche Bank is now at 5,500 from 5,100. 

Interestingly, outside of BMO and Wells Fargo, these targets don’t have much conviction, considering where the market closed.

Maybe the conviction is with those major firms that, unlike Mike Wilson and Morgan Stanley, haven’t blinked.  

For all the hoopla about the slam dunk coming after the bell tomorrow in the form of NVDA financial results, there is palpable trepidation in this market. 

 

Comments

Hmmm......Looking at that list of S&P targets makes me wonder what Jamie D knows that nobody else does? CharlesHaselberger on 5/21/2024 11:57:59 AM

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