Morning Market Review: January 22nd, 2024

Fresh new S&P 500 highs at the open. Still as yet unconfirmed by the equal weight S&P 500, NYSE Composite and the Nasdaq Composite. It's very telling that the two exchange composite indexes remain far from their 2021 all time highs.

An article in the Wall Street Journal notes that small caps which are supposed to benefit the most from rate cuts are now lagging the S&P 500 by the largest amount on record as of this point in January.

"Shares of smaller companies looked as though they were finally about to shine. Then 2024 happened."

"The Russell 2000, an index of small and midsize companies, has tumbled 4.1% in the new year, lagging behind the S&P 500’s gain of 1.5%. That is its widest underperformance on record"

FR: The massive and growing breadth divergence should have been a warning call for bulls, but instead they keep piling into the mega caps.

This week is the Fed quiet week ahead of next week's FOMC.

Nvidia opened at all time highs and is now negative as of 10:30am.

Mid-morning breadth is solidly positive on both exchanges.

The speculative stock of the day is a company called "Super Micro Computer" which is one of the best performing stocks of the past several years. The company gapped up up to a new all time high and then left a tall wick on the daily.

What's notable is that this stock peaked at the July S&P 500 high: