We are lurching closer and closer into the dopamine zone, where it seems like the market will go up every day.  It feels good. Remember that we can be in this zone for weeks to years, so don’t freak out.

Gang Green

Every sector moved higher yesterday except for Utilities. The move in Technology (XLK) was mind-boggling and even overshadowed the USA’s return to the moon. The Technology moonshot is more lucrative for the average American.

I wondered if the broad market on the Heat Map could rally with the larger boxes in the red, but the better option is that everything is green except for the tiniest boxes -works for me.

NASDAQ 100

The Nasdaq-100 (NDX) closed up more than 3.0%, to a new all-time high for the first time since March 22, 2000. That date is ominous. But understand that was the last time after hitting that combination numerous times in several years. In other words, history suggests this could be a bubble's start, not the end.

Outsized gains in the advancers versus losses in decliners underscore a positive risk-reward correlation.

Today’s Session

As the AI euphoria wears off, the realization that the Fed may not be able to even cut three times this year will begin to bubble up in the minds of investors.

There is still lots of data to see, and rip apart, but the two-year treasury yield is moving swiftly in the wrong direction for imminent rate cuts.

The ability to rally in that new reality is pivotal for the next leg of the market.