It was an impressive session yesterday that began with more salvos between the United States and China, ahead of the meeting of the two nations’ leaders (the teams have already started dialogue).

It was one of those sessions where Trump moved markets, China headlines moved markets, and Fed Jay Powell moved markets. When the dust settled, it marked that it told the story.

The S&P 500 (SPX) slipped into the red column at the closing bell, but it was a very bullish session from the standpoint of market breadth. Nine sectors finished higher, with safe havens leading the way. And the cyclical sector also showed a positive performance. Technology (XLK) took it on the chin, while Energy (XLE) continues to be a rudderless ship.

Market Breadth

When those large boxes and rectangles are in, it's tough for the broad market to register gains, but the picture below is healthy. Meanwhile, there was an encouraging bounce in stocks, changing hands above the 200-day moving average.

Small-caps led in almost all factor categories (revenue), and the S&P 600 Small Cap Index (SML) enjoyed 81.5% advancers. The SML also bounced off its 50-day moving average.

The ten-year bond yield (TNX) slipped into the threes yesterday, as Jay Powell seems more committed to rate cuts and bringing an end to quantitative tightening.

Positive Signs

Wells Fargo (WFC) was one of the top advancers on the S&P 500.

Private Equity Apollo Global Management (APO) had a solid bounce, but major concerns linger.

Today’s Session

Buying the dip continues to work, even institutions are getting in one the act.  Don’t let the talking heads, or folks, with different interests and goals alter your own goals.

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