In case of emergency: break glass and buy Technology (XLK) stocks.

There was an interesting mix of names among the top advancers. ServiceNow (NOW) is distinguishing itself from the rest of the software and International Business Machines (IBM) is reloading after a disastrous reaction to the last earnings report.

…Wash and Repeat

Breadth on the NYSE was essentially even with respect to directional moves and volume, but new highs stood out against new lows.

All the action returned to the NASDAQ Composite, with distinct nods to the bullish side.

There wasn’t a feeling of euphoria, but late buying hinted at a sense that the train is leaving the station once again.

Market Breadth	NYSE	NASDAQ
Advancers	1,483	2,574
Decliners	1,302	1,990
New Highs	145	280
New Lows	31	97
Up Volume	2.05 billion	4.53 billion
Down Volume	2.11 billion	3.03 billion

Factors

Investors shifted their focus to large-cap stocks, and momentum rebounded. The other end of the trading barbell saw green across the quality column.

Mo…

Momentum is breaking out.

And mega caps are reheating.

The problem is that all the hope for broadening the rally is fading quickly, even for the NASDAQ 100.

The Labor Crisis

According to the latest NY Fed Survey, Americans are less confident about finding a job than at any time since at least 2013. Just in time for the newest mass jobs revision from the BLS.

Keep in mind that if the Fed starts cutting rates and the economy avoids a recession, the stock market may buck the seasonality trend of a weak September and instead rally, as it has in the past.

Today’s Session

Major indices started the day in the green as investors await inflation data later this week.

The ten-year treasury yield (TNX) has plummeted in recent days, but it is now looking to test support around the 4% level.

There was an explosion in Doha this morning, with details still hitting the tape.

Subsequently, oil prices moved higher on the news.

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