The market consolidating gains is a very healthy sign.  Enough intra-day volatility to shake out weaker hands, and yet, buyers continue to materialize, but are resisting the urge to panic buy.

There have been three breakaway gap-openings (see arrow), and now the S&P must clear 4,600. 

Note: the RSI is hinting at short-term overbought.

The Bond Market

Bonds yields continue to come down, and now the ten-year looks to fill the gap (see arrow) around 4.30%.  The big test comes at 4.10%.

Disaster Correction

Historically, it has taken a cataclysmic event to turn rising bond yields lower.  Let’s hope it doesn’t come to that this time.

The experts are convinced there will be a soft or no landing for the economy.

Fed Barr out this morning stating, we are likely at or near the peak of where we need to be on interest.

Portfolio Approach

There is no change to the sector weights in the Hotline Model Portfolio.

Today’s Session

The market indicating higher at the start of trading today will be a test of conviction, as the urge to scalp some trades will be even more intense ahead for the weekend.