Some selling hit in the closing minutes, but it was a quiet day of gains for the indexes. Breadth was around two to one positive, but momentum was mixed, and new 12-month highs were under 400.
Growth stocks continued to strengthen after weeks of pressure, and even groups like gambling, which has been terrible for a while, looked quite good Monday. Biotechnology, which acted better last week, lagged Monday, but there really wasn't any aggressive selling. The action felt a bit slow, but sentiment was upbeat, and the recent worries about inflation seem to have been forgotten.
The S&P 500 and Dow Jones are starting to become a little overbought again, but both the Nasdaq and Russell 2000 ETF (IWM) are wrestling with their 50-day simple moving average.
Cryptocurrencies found their footing after some wild volatility this past weekend, and Tesla's (TSLA) Elon Musk made some positive comments about the potential for crypto miners to address environmental issues that gave them a late push.
The good news is that stock picking and speculative trading are looking better now, but the bad news is that energy levels appear to be low, and there are some signs that the rotational action is now going in the other direction.
The action now has the feel of summer trading as the action was mostly upbeat, but was slow and random in places. With both the inflation issue and the COVID crisis getting mostly digested, the market doesn't have any immediate catalyst to drive it.
We have a three-day weekend coming up, and there is a good likelihood that trading is going to stay slow the rest of the week.
Have a good evening. I" ll see you tomorrow.
