The rally continued Friday, but the script that dominated the week was flipped with defensive sectors leading the charge. That’s a sign of a healthy rally, when leadership can change, and the overall performance doesn’t miss a beat. 

Factors were great across the board but action in low volatility signals a search for calmer waters. 

Calm, Cool and Excited as all Get Out!

Speaking of low volatility, that plunge in the Volatility Index (VIX) was as impressive as anything else last week. All that fear and anxiety was washed away, with a desire to make portfolios great again. 

The Fear and Greed Index has been all over the place, matching the emotions of a nation that was told the election would be razor thin.

Instead, the resounding outcome offers investors a sense of greater comfort.  I suspect we could see extreme greed soon. 

Breadth

Market breadth moderated from Wednesday and Thursday. There was more down volume than up on the NYSE. 

That’s logical action.

Today's Session

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