The good news is that the omicron variant scare did not kill the market Monday.
The bad news is that it was another very deceptive day, with strength in the indexes covering up broad swaths of weakness in small caps, growth stocks, biotechnology, cannabis, and a variety of other areas.
Breadth wasn't terrible with 4,700 gainers to 3,500 decliners, but there were 400 stocks hitting new 12-month lows compared to just 60 at new 12-month highs.
The media will focus on the strength in the indexes, but it was a weak finish, and the Russell 2000 ETF (IWM) was red. It was a major positive that the panic selling that occurred on Friday did not continue, but it was not a very healthy action overall.
The positive spin on this is that the market is working through an emotional upheaval and is also dealing with rotational action and some macroeconomic concerns. It will take some time to sort through it. Hopefully, this will start to produce better technical conditions, but right now, this is a tough market for stock pickers, especially if you are looking at anything outside of the FATMAAN names.
We still have a risk that the omicron variant could be a greater negative, but the market is sensing that it can be controlled. That can change, but it is going to take a major surge in cases in a number of places before we see a more severe market reaction.
Have a good evening. I'll see you tomorrow.