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Morning Commentary

Yes, The 493 Can Carry the Rally Baton††

By Charles Payne, CEO & Principal Analyst
6/3/2024 9:54 AM

The title of our Hotline report on Friday was: CAN THE 493 CARRY THE RALLY? 

Well, we got an emphatic answer, with an emphatic reversal.  The S&P 500 opened higher then swooned big time, only to regain its footing around noon and then surge in the last thirty minutes of trading.

The move was extraordinary. 

Last week was difficult, especially with all the Treasury issuance pushing bond yields higher after poor auction results. 

There was a temperamental aspect to trading all week that lent itself to the possibility of a massive selloff as pressures mounted.  There was a moment of truth on Friday and somehow the market turned higher on huge volume.

Chart

Same Tide 

All eleven sectors were higher as there was lots of bottom fishing. 

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Market Breadth

Advancers swamped decliners, especially on the NYSE.  The NASDAQ composite continues to see wide bifurcation resulting in more new lows than highs. 

Market Breadth

NYSE

NASDAQ

Advancers

2,169

2,473

Decliners

666

1,723

New Highs

109

79

New Lows

38

95

Up Volume

2.07 billion

2.59 billion

Down Volume

1.06 billion

2.33 billion

Once again, the focus shifted to small caps as small cap value surged.

Value outperformed core and growth.

Up Arrows

It’s all up arrows, but where are the opportunities? 

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The Russell 2000 (IWM) looks very compelling, bouncing off its 50 day moving average. 

Chart

The NASDAQ might be vulnerable as tech not named Nvidia (NVDA) are putting in mix performances of late. 

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Equal weight underscores how skewed this rally has been. 

Chart


Comments
What does 493 mean??

David Moreno on 6/3/2024 10:14:26 AM
Meaning the other 493 stocks of the S&P 500Ö excluding the Mag 7.

Daliah Amar on 6/3/2024 10:21:09 AM
 

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