The giddy-up has occasional hitches, but the market is moving higher on infectious momentum.

Middle East Heats Up Even More

Last Friday, Energy (XLE) staged a massive move after the news about the killing of Hezbollah’s leader. Technology (XLK) got smacked pretty well, holding down the S&P 500, but buyers are more comfortable spreading the love.

I'm watching small-caps closely this week for a potential iShares Russell 2000 ETF (IWM) breakout.

Jay Powell at the Plate

Fed chairman Jay Powell speaks at the National Association of Business Economics today. Everyone hopes for clarity as the consensus sees another 50-basis points (bps) rate cut in November.

Meanwhile, the S&P 500 is lifting off without testing the old support point, which is a characteristic of a melt up. I would have preferred testing that old resistance point, holding it, and then turning it higher.

Today’s Session

China’s stock market continues its monster spike higher as more bad economic news invites more speculation on additional stimulus.  Packages announced thus far are estimated to top more than $500 billion.

The narrative is that the market anticipates a bump in the economy. That’s specious considering the size of the move.

Meanwhile, it's going to be a quiet session until later today when Jay Powell weighs in. It is where the new easing cycle goes from here.