Yesterday, three sectors were higher, but the real news was the session's resolution.

It was tough all session, but the market climbed off the lows and finished at the highs, and that got my attention. The hammer-shaped candlestick is not a buy signal because the market is not in a downtrend.  Still, it was an encouraging session.

Looking for Bunkers

Momentum and growth remained under pressure, but buyers warmed to large-cap value and low volume.

Heat Map

Consumer Discretionary (XLY) fared worse than Consumer Staples (XLP) (defense), even though Walmart's (WMT) big headline was cautious guidance. On the other hand, Hasbro Inc (HAS) was the top gainer in the session. I’m worried about the consumer.

Boring Wins (sometimes)

The top advancers featured many unsexy but solid names—companies that will be around for the next 100 years and make stuff we use daily, but the dots have yet to be connected.

The following names don’t lead to higher markets, but they preserve wealth:

There was a big decline in retail investor bearishness, but only a nudge in bullishness. It looks like “caution” is where it's at right now.

Today’s Session

The consolidation phase continues. Valuations are mostly extended when employing traditional metrics, and while that’s not a reason to move lower, investors are looking for narratives and reasons for urgency.

Buy the dip works, but there must be a dip first.