Yesterday, Wall Street tried to kick the “Mag Seven” to the curb, but like Marvel’s Avengers, the “Mag Seven” are back to save the day. Mega-cap leadership is more infectious for the market, creating a fortuitous wave that lifts non-mega-cap ships.

Lots of Room Above

• Meta Platforms (META) +2.69%
• Alphabet (GOOGL) +2.34%
• Nvidia (NVDA) +1.92%
• Tesla (TSLA) +1.68%
• Amazon (AMZN) +1.34
• Microsoft (MSFT) +0.94
• Apple (AAPL) +0.11%

The “Mag Seven” closed above their collective 50-day moving average as the Rate of Change (ROC) and Money Flow (MF) turned in the right direction.

It's not hard to see the next leg higher, eventually retesting the all-time high point.

It’s always lovely to see the rally broaden out, but Technology (XLK) is too vital at this point not to participate or lead the charge.

While Tech led the way, it was a vigorous session for small-caps.

 Still Off Track

Unlike the “Mag Seven,” the iShares Russell 2000 ETF (IWM) has more work to lure buyers.

The Fear & Greed Index is still in the ‘fear’ zone, which I like as a contrarian buy signal.

Today’s Session

Markets are higher this morning as rate cuts remain on focus. The rate cut speculation is moving fast with a 50-bps cut probability now at 55% from 14% yesterday.

On the economic front, the September Consumer sentiment is expected later today. We’ll have more on this in the afternoon note.