Is this thing working?  The Fear & Greed Index is stuck in neutral, but the market is taking off.

Yesterday, advancers surpassed decliners, new highs surged above new lows, and volume was more than two-to-one down volume, as all the major indices finished higher – the Dow Jones Industrial Average (DJIA) closed at an all-time high, as higher-priced stocks enjoyed the most substantial gains.

The market rallied, as “Mag Seven” mostly spun its wheels alongside Eli Lilly and Co. (LLY), which has become a momentum darling.

Advancers

• S&P 500 (large-cap): 67.6%
• S&P 400 (midcap): 75.0%
• S&P 600 (small-cap): 74.3%

Out of this World

 

The aerospace trade has begun 2026 with a blast. Of course, some of these names took it on  the chin in the fourth quarter of 2025, but this latest action is convincing for those with a higher tolerance for turbulence.

The Institute for Supply Management (ISM) Manufacturing for December slipped to 47.9, which means a contraction. Although recession warnings happen below 42.3, it's not a great feeling.

CES

Consumer Electronics Show (CES) kicked off yesterday. While the show has lost much of its cache in recent years, the artificial intelligence (AI) excitement suggests it could have a greater impact on the market this time around.

Nvidia (NVDA) is the straw that stirs the technology drink, so any developments there are important, but the AI story has broadened out considerably. CEO Jensen Huang kicked it off yesterday after the close.

Today’s Session

Lots of economic data this week puts focus back on the Fed and monetary policy for 2026. The yield curve (2/30) is hinting more at economic recovery and I think Powell would like to go out on a high note.

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