The day started slowly, but as stocks inched higher, it attracted more buyers. By the end of the day, breadth was positive, with around 4,300 gainers to 3,550 decliners and over 270 new 12-month highs. The list of stocks up more than 10% had expanded to a few dozen, and even bitcoin managed a very energetic bounce after cracking the $30,000 level early in the day.
It was a good example of the thinking that if the bears can't take this market down, then we might as well buy them.
Fed Chair Jerome Powell appeared before Congress late in the day and, once again, made it clear that he isn't overly concerned about inflation. The market always loves to love a friendly Fed, and Powell made it easy.
The Nasdaq managed to make a new all-time high, but this is not the sort of frothy action that causes bears to look for contrary indicators. The market has plenty of worries, and the recent drama about inflation and higher interest rates makes for a good opportunity to climb a wall of worry.
It is surprising how easily this market can shrug off interest rate and inflation drama, but the refusal to embrace a negative narrative is nothing new. This market is in good shape for some further upside, but the key to success will be good stock selection.
Have a good evening. I'll see you tomorrow.