Positive Hump Day

The markets finished higher for the 2nd straight day. With energy prices falling, and bond yields steady, you would think the backdrop for equities is getting brighter.

Biotechs and brokers led the day, which is a positive sign. Biotechs often signal that momentum is returning to the market. AMGN and DNA have been in long declines, so hopefully they can participated. Brokers are breaking higher, which is a good sign that this complex doesn't think rate hikes will kill the economy.

Breadth was positive, and the number of new highs is expanding slowly. The COMP broke above its 50-day, while the SPX put more distance between its 50-day. With the SPX closing at 1280, it would not be unreasonable to start looking for new highs in the near future.

I would like to see some more sideways consolidation, especially to give some of the former market leaders more time to recover. But alas, we have to accept the markets as they are, and not how we wish them to be.

Have a great night--

long AMGN