Monday was an upbeat but quiet session. Funds are flowing into equities focusing on large-cap value, which may explain why the S&P 500 held onto slim gains as other large indices stumbled. Overall, this was a solid session, but there was not enough volume to be considered a buy signal.

Market Breadth

Large-cap value enjoyed a solid session, but momentum had the best action, particularly mid-cap momentum.

Seesaw NASDSQ Action

Decliners swamped advancers on the NASDAQ, even as up volume swamped down volume. Look for more volatility as traders position and reposition amid this period of uncertainty. 

Economists may not be like protectionism, but markets do. President Biden announced more action to stop Chinese imports from entering the country in the future. The latest salvo pumped auto stocks, propelling Consumer Discretionary (XLY).

Laying it on Thick

Federal Reserve members are out there laying it on thick.

After that 50-basis points (bps) rate cut in September 2007, Fed officials said all was well with San Francisco Fed President Yellen, even saying the most likely outcome for the economy would be a soft landing. 

Today’s Session

The big news this morning is the aggressive action taken by the People's Bank of China (PBOC) to put a spark in China’s sagging economy.

Lots more Fed speakers today, including Michelle Bowman who became the first Fed official to dissent since 2005.