It was an impressive session yesterday that began under pressure and then turned higher. I like that the S&P 500 (S&P) was able to rally and finish in the plus column without Technology (XLK). Ironically, a couple of lesser-known semiconductor names moved higher. Buyers also flocked to momentum darlings and did some bottom-fishing. The tide is shifting back to an upward bias.

Economic data & the Federal Reserve

ADP reported another month of job losses (November), while the Institute for Supply Management (ISM) Services came in better than expected, with prices increasing more slowly. The dynamics for the Fed should be crystal clear – their employment mandate should be the focus next week.

Small-Caps Big Moves

Mostly green across all factors, and once again, small-caps stand out. 

There have been lots of false starts for small-caps, but the S&P 600 (SML) closed above key resistance, with 78% of components higher.

Today’s Session

Initial jobless claims came in under 200,000, which paused the market in pre-opening trading, but a Meta Platforms (META) headline sparked the NASDAQ Composite. It's like I’ve been saying, Zuckerberg had to give the Street a bone on spending.  It's not the first time. In fact, Meta Platforms (META) was falling off the face of the earth when he decided to play the Wall Street game.

The stock surged afterwards, and this is probably the spark for another long-term rally.