🟢 Market Signal RISK ON. Yesterday's gap down put market into short-term oversold condition. As many are still at the sidelines dip buyers pushed market higher and most indices had some decent closes. // However, many moves especially in the recent highflyers -except semis which are doing currently their own thing- faded into the close. I would rather say quite a few stocks look like WSS in the making. // On the other hand we saw rotation into health care $XLV and financials $XLF, which is very constructive. // However, the next few days will give more clarity. Overall it remains a bull market and even professionals lightened up their exposure this week by 8 points and are now neutrally positioned at 87%. So there is some room now left for some more upside. // This week's key event is today's U.S. employment report in premarket, which will directly shape Fed rate-cut expectations and stock valuations. // Default action SOH, of course unless a good HVBO with catalyst comes around otherwise need to see if yesterday's new additions show some progress. 1. The stock market finished mostly higher today, with the $SPX (+0.4%) and $DJIA (+1.7%) notching gains including a fresh record high for the DJIA while the $NDX (-0.1%) was flat as tech names pulled back but rotational buying across the broader market provided support. // Health care was the top mover with nearly all components higher led by $HUM (+6.82%) and $UNH (+5.16%), and financials (+2.6%) gained solidly with banks advancing and $BX (+7.50%) higher following a manageable BCRED redemption update, while consumer staples (-0.1%) was the only other S&P 500 sector to close lower and nine sectors finished at or above their baselines. // Tech names faced pressure with $AVGO (-12.59%), $CIEN (-13.66%), and $CRWD (-3.81%) lower following their earnings reports and the PHLX Semiconductor Index down 2.2% improved from nearly 6% intraday weakness, while $GOOG (+3.85%) was bought into the recent dip after its $84.75 billion equity capital raise to expand AI infrastructure. // The Russell 2000 (+1.5%) and S&P Mid Cap 400 (+0.4%) outperformed as Treasury yields moved lower; today's session reflected healthy broadening in market participation as investors rotated into financials and health care the worst-performing sectors on a year-to-date basis while technology stocks took a breather, and sentiment remains constructive with the propensity to buy weakness rather than retreat from risk assets. // Data showed Q1 productivity revised to 0.3% and unit labor costs to 1.8% both better than consensus highlighting that productivity has picked up nicely from a year ago while unit labor costs have come down tempering labor-based inflation pressures; initial claims rose to 225K but remain consistent with an otherwise solid labor market. Treasuries traded with a positive bias in a bull-steepener move with the 2-year yield down 4 bps to 4.05% and the 10-year yield down 1 bp to 4.48% showing relative strength from the front end to the intermediate end of the curve. 2. Strong breakout day with almost 400 stocks up. Mid-term breadth also flipped back to bullish and now all breadth ratios are back into bullish readings. // 20s bullish remain elevated but are in neutral territory. // Professionals even reduced their exposure this week by about 8 points to a neutral 87. // Market Signal RISK ON. EOD: $APPS, $ARKG, $BEN, $BFLY, $CCI, $GOOGL, $HOOD, $PINS, $PSNL, $SNAP. ANTS: $BIRK, $FCX, $VCIG. SWINGS: $FAS, $IGV. EP: $APPS, $GOOGL.