The market exhibited impressive resolve all week long, including on Friday. Cracks in the rally are hard to see on the surface, but they are widening. Still, the rally has ‘swagger and moxie.’

As usual, Technology (XLK) led the way, followed by Financials (XLF).  But there was some bottom fishing, with Health Care (XLV), Energy (XLE), and Materials (XLB).

Better Breadth

Breadth was much better on Friday, but it's like a pendulum that swings from sound, or even great, to poor, or even awful.

Decliners matched advancers on the New York Stock Exchange (NYSE) and the NASDAQ Composite.

New highs are thinning, even as the market threads along record closes. This is not a good thing, but it's also not the end of the world.

Factors

Value edged out ahead of the rest of the board. There is a deep search for stocks that haven’t already surged.

Health Care

Several Health Care (XLV) names made up the top ten overall S&P 500 (SPX) advancers on Friday. They aren’t the huge names that can carry the sector, but investors are kicking the tires.

There is no urgency to buy Health Care, but it’s worth keeping an eye on XLV, as it is moving above its 50-day moving average, warranting a closer look.

Today’s Session

Global money managers that eschewed the market in April are beginning to pour back into the fray, which pressures those remaining on the sidelines.

The hot stocks will remain hot, but missteps will be severely punished.