The market slipped back into ‘neutral’ from ‘greed’ yesterday, confirming that it’s essentially a gauge of mega-cap growth stocks for all its components.

Market breadth was bullish (only nine new 52-week lows on the New York Stock Exchange (NYSE)).

Market Breadth	NYSE	NASDAQ
Advancers	2,421	3,225
Decliners	417	1,020
New Highs	277	271
New Lows	9	63
Up Volume	2.58 billion	3.85 billion
Down Volume	710.27 million	1.87 billion

The S&P 500 was still down during the session because it was not the number of squares and rectangles that went up or down but the color of the biggest boxes in red.

It was bound to happen, but who knew the spring was coiled this tight? Small-Caps dominated, and Small-Cap value was king for a day.

Meaningful

It was the most the iShares Russell 2000 ETF (IWM) has beaten the NASDAQ-100 (NDX) since early 2021.

Some dismissed the move, but these pops of volume have seen a solid follow-through.

Short Squeeze

Funds have been near “max long” and “max short,” meaning this move would happen eventually.

From the charts below, there is much more room for additional squeezing.

Today’s Session

Bank Earnings

It's sort of a mixed bag and mixed reactions.

JPMorgan Chase (JPM)

• Earnings per share $4.40 consensus $4.27
• Reserves $800 million from -$100 million.

Wells Fargo (WFC)

• Earnings per share $1.83 consensus $1.28
• Cost cutting and NII miss sending shares lower.

Citigroup, Inc. (C)

• Earnings per share $1.55 consensus $1.39
• Stocks is popping.

Producer Price Index

PPI came in hotter than expected, including year-over-year core 3.0, beating consensus 2.5.

Small Caps in Focus

There is still intriguing early morning action in small caps where there has been a spike in call option activity.

Comments

Great charts Charles! Keep em coming. Tom Hall, Phx Tom Hall on 7/14/2024 4:24:53 PM

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