It was an up session from yesterday’s opening bell, paced by small-cap Russell 2000, which ripped into the close. 

All green across all factors, with the largest being small-cap quality and momentum.

All eleven sectors in the S&P 500 are climbing higher.

The S&P 500 (SPX) held at its 50-day moving average, but the rate of change (ROC) and money flow (MF) are still very depressed.

Market Breadth

Impressive market breadth for the New York Stock Exchange (NYSE) and the NASDAQ Composite.

Advancers led decliners on the NYSE by a four-to-one margin and on the NASDAQ by three to one. But overall volume and the pace of up-volume to down-volume spoke the loudest, revealing significant conviction among buyers.

I’m surprised at how few new highs there were for both markets.

Market Breadth	NYSE	NASDAQ
Advancers	2,218	3,075
Decliners	564	1,189
New Highs	125	123
New Lows	49	113
Up Volume	2.13 billion	4.74 billion
Down Volume	617.47 million	1.47 billion

Heat Map

The heat map shows just a few red specks. It was an excellent session for the market with election implications.

Broadening Rally

Just as the S&P 500 bounced off its 50-day moving average, so did the Advance-Decline Line. For all the cheering about the rally broadening out, the last couple of weeks have seen many names stumble.

On that note, the percentage of names changing hands above their 50-day moving average slipped below 50%.

Today’s Session

There is a knee-jerk celebration over the election outcome. Its good stuff, except maybe the spike in bond yields.

I’m on record for not being a fan of bonds or the 60-40 portfolio.

But there are economic implications and an economic message from the bond market that we shouldn’t ignore.

I’m thrilled about the unleashing of animal spirits.

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