Last week was a great one for the market, which surged out of the gate on strong reactions to earnings from key companies, including Palantir Technologies (PLTR). There were plenty of big gainers outside of investor favorites and mega-cap names. Niches assumed to be victims of artificial intelligence (AI) changed a lot of minds last week: consulting, software (IGV), and data companies.

As I noted in the days leading up to last week, the pendulum was swinging toward fear of missing out (FOMO).

Breakout

Not only did the S&P 500 (SPX) break out to new highs, but there is also plenty of upside, according to the relative strength index (RSI). The top of the trading channel suggests room to 8,000.

Factors

Growth is coming on nicely, while low volatility and quality continue to struggle. There have been hints that growth may outperform value – it has the wind in its sails.

Broad Market

Market breadth was simply fantastic last week:

• Advancers over decliners
• New highs over new lows
• Up volume over down volume

The one thing missing is volume – there truly hasn’t been convincing volume to propel the market higher. That could change, as new highs put a lot of pressure on folks to put money to work. We even learned over the weekend that Berkshire Hathaway (BRK.B) has put some of its cash to work after building a historic cash pile.

Today’s Session

Lots of action in the tech world. Meta Platforms (META) is releasing an open-weight AI model that has many thinking “Watermelon” is going to debut soon.

The semiconductor selloff was abrupt but might be over. There will be great urgency not to miss the move once it begins.