The market limped into the weekend, with investors retreating into traditional defensive sectors and Financials (XLF), which got the benefit of the doubt after the election.

Meanwhile, large-cap growth continued its rugged retreat, although there were few places to hide.

Key Technical Levels

The S&P 500 (SPX) trades in a solid upward channel with crucial support at the 50-day moving average.

If the index could not hold, it would be vulnerable to $5411, but it's hard to see that happening.

I’m spying on the Volatility Index (VIX) to signal increased ‘fear’ as the emotional roller coaster leads to huge individual stock moves and greater overall volatility.

Geopolitical Heat

The war is heating up as North Korean troops have joined Russia’s most intense assaults in months, and now President Biden has given Ukraine the okay to use U.S. weapons more aggressively.

There will be lots of Fed speak this week, and Nvidia (NVDA) earnings mean this could be a wild week.

Today’s Session

There is encouraging action before the opening bell in large cap tech and momentum names.  Last week’s decline sparked several calls for the market to go much lower, with a couple of professional observers making comparisons to 1929.

But the US market continues to be the best even in down weeks.

The US stock market has outperformed the rest of the world for 74 consecutive weeks.