The session began with another Wall Street about-face. Citigroup (C) is joining other firms in hiking its target on the S&P 500 (SPX).

• JPMorgan Chase & Co (JPM) 6,000 from 5,200
• Royal Bank of Canada (RBC) 5,730 from 5,500
• Deutsche Bank AG (DB) 6,550 from 6,150
• Barclays PLC (BCS) 6,050 from 5,900

The Turn

The fourth community card in Texas Hold’em Poker is called the “Turn.” Usually, decisive bets are made afterward, as only one card is left to be drawn (the river). Yesterday, the market “Turn” came after the surprising decline in inflation expectations from the New York Fed.

Knocking on The Door

-Paul McCartney & Wings

The market has made an impressive rebound, but there is a big test to avoid a double top that triggers significant selling. You can feel the tension, but once new highs begin, they will be contagious.

Tesla U-Turn

Consumer Discretionary (XLY) led the way yesterday, but it was about one company: Tesla (TSLA). Automobiles and Components climbed more than 4% during the session.

Tesla began the session under pressure from two Wall Street downgrades, even after Elon Musk deleted several unflattering posts about President Trump. Later in the session, scuttlebutt about Robotaxi finally happening in Austin, Texas, sparked a move higher.

Greed Is Back and Recession Fear is Fading

The Economic Calendar Gets More Intense

The last hope for Wall Street’s bears comes on Wednesday with the Consumer Price Index (CPI) report. There could be some angst late in today’s session.

Today’s Session

The market looks to open slightly higher. The trend is biased and remains to the upside while the rally continues to broaden.  The NYSE Advance-Decline line has broken out.

Stocks above 50-day moving averages are also surging.

Less than 50% of names are outperforming the board market which could be interpreted to match any narrative.  I see it as a signal of individual opportunities.

Comments

Great commentary from Charles. I have been following you for a while now and I'm impressed with your sage commentary. I also love the McCartney reference. Mike Mayone on 6/10/2025 10:27:02 AM

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