It was a sight to behold. The Artemis II mission launched the Orion spacecraft on the first U.S. moon mission in five decades, underscoring that this next chapter in space will fulfill what was once thought impossible: living and working on the moon and beyond. It was propelled by an RL10 engine capable of providing 25,000 pounds of thrust. The question back here on earth is how much thrust will it take to blast the stock market back into “bull mode.”

Knocking on the Door

Someone knocking at the door

Somebody ringing the bell

Someone's knocking at the door

Somebody's ringing the bell

Do me a favor

Open the door, and let 'em in, ooh, yeah

-Wings

Yesterday, the iShares Russell 3000 ETF (IWV) closed right at the 200-day moving average, and is now knocking on the door.

I think closing above that milestone brings the 50-day moving average into focus quickly, and could trigger a massive, short squeeze.

Patches of Green

I’m optimistic about the last couple of sessions, especially with leadership coming from the Technology (XLK) side. The only patches of red were Energy (XLE) and credit cards.

Industrials (XLI) acted great as well.

More Momo

Once again, momentum led the way, followed closely by growth.

Broad Market Still Mixed

Overall market breadth was encouraging, but new lows over new highs reflect the internal damage this market has endured since that solid January start.

Last night, President Trump addressed the nation with an update on Operation Epic Fury. It was a strong, even-keeled address that provided a timeline for a conclusion and urged those nations with a greater stake in their economies to step up.

I’ve seen political animosity cause too many ill-fated decisions in recent years, but Europe should heed the call – it isn’t equipped to do any heavy lifting. They simply couldn’t do it anyway. Trump spoke to the magnificence of military execution and honored the thirteen lives lost thus far. Let’s hope those in charge of Iran acted in the best interest of humanity.

Today’s Session

Markets moved immediately after last night’s address. I guess the algorithms didn’t hear “the war is over.”

I will say this surge in oil is greater than I anticipated, and I suspect some of it is short covering.

Thursdays have been tough, and with no trading tomorrow, it could mean even more pressure on stocks.

I don’t think crude prices have been too high for too long to impact most earnings materially just yet.  But it’s hard to see a major defense on the downside.

Let it run its course, but if the clock to conclusion is officially ticking, each session means we are closer and even more focused on fundamentals rather than emotions.

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