Last week, the ‘miss’ on the jobs report, coupled with other economic data misses, put the stock market in a better mood after the sobering reality that Jay Powell & Co. will need evidence before cutting rates.  They are data-dependent, which means they need more data to assume the glide path to their 2.0% goal will be a smooth, soft landing.

Bias has shifted back to the upside on a short-, medium-, and long-term basis.

Small-Caps Stealth Rally

On Friday, Apple (AAPL) garnered all the attention after management shattered the record books with their $110.0 billion buyback announcement.

The stock laid an egg, but there is speculation that the Chinese business will improve.

So, it stands to reason that with Apple leading the way, large-cap growth would outperform, but on the way, small-caps rocked, big time. Of course, it helps when bond yields return to earth, considering the borrowing needs for many small names (up to 40% are zombie companies).

I doubt this will be a week of dart throwing, but those false starts in small caps are probably over, and now it's time to build exposure focused on quality.

Today’s Session

Market bias is still pointing higher this morning; although, there isn’t a lot of conviction, as investors await the next potential catalyst.

Threading the 50-day moving average is fine for now, but this is the perfect spot to begin a move toward a double top that probably sets the stages for direction over the summer.