Yesterday was a solid session for the market, even as “Mag Seven,” besides Nvidia (NVDA), struggled.  The action moved to the rest of the market, not just other S&P 500 sectors.

Green across the screen!  This is the kind of broadening of the rally that adds credibility. And check out the action in mid-caps and small-caps. “There’s gold in them thar hills.”

Technical View

SPDR S&P Midcap 400 ETF (MDY) and iShares Russell 2000 ETF (IWM) have similar charts. Pulling back to fill significant gaps and holding them, then bouncing higher, makes you sit up in your chair. Closing new highs makes you put money to work.

Retail Retreats

Retail investor sentiment made a massive shift to less bullish and more bearish. It’s a logical reaction to last week’s action and the constant chorus of talking heads suggesting the ‘Trump Bump’ was over.

It’s good to be circumspect, but don’t guess market tops, even when they are driven more by emotions than fundamentals. Your ship has come in, so ride the waves, but don’t swim back to shore.

Today’s Session

It’s a quiet morning, but lots of data is coming that could help spark a more definitive picture. As for enthusiasm, don’t let the talking head suggest retail is too giddy when it's Wall Street playing catch up. Lots of firms are releasing the 2025 outlook, and none are saying to sell.