Friday was a truly encouraging session that saw what could easily have been a significant hit reverse almost immediately out of the gate.

Tech Bounces Back

There were large red squares, but nothing dramatic, as buyers were taking some off the table in names with big recent spurts and buying those that have been under pressure or stalled.

All eyes are on Nvidia (NVDA), which reports this week, and continues to fetch upgrades.

Market Breath

Overall, market breadth was disappointing, especially for the S&P 500 and S&P 400 (mid-cap). They have struggled as investors periodically reassess small caps, but remain focused on mega-cap tech as the best haven and value.  Therein lies the main issue for the market: a lingering reluctance to buy the also-rans persists despite signs of bottom fishing being aggressively pursued.

Factors remain worrisome even when the market exhibits resilience.

Only 25% of names are changing hands above their 10-week moving average. The fact that the S&P 500 has held here hints at enormous rotation opportunities, but handoff attempts have been sloppy.

Today’s Session

Nvidia (NVDA) opens under pressure after news that Peter Thiel sold his entire stake.  Thiel has been very critical of AI lately.

 

Berkshire Likes Google

On the flipside, of Thiel selling Nvidia (NVDA), is Buffett buying Alphabet (GOOG/L) for the first time.

This is truly important as a stamp of approval for AI in general and Google in particular.

Economic Data

Lots of economic data is out this morning, and later in the day, as we await the release of jobs data later in the week.

Empire Fed Manufacturing came in at 18.7 from 10.7 in October and against the consensus of 6.0.  It’s a solid number with prices growing slower and employment growing faster.

I love the fight in the market, but not the internals.

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