As the Nasdaq made its way toward my upwardly revised target of 12,500 earlier this month, I had advised that I believed that the easy gains were probably realized at that point for the Nasdaq and technology. 

Fed Chairman Powell’s remarks yesterday that the disinflation process is beginning spurred a rally among the major market indices with the Nasdaq, once again, leading the way. 

There was some moderate rotation in yesterday’s session and as I’ve mentioned, this is something that I’m hoping to see more of as the market consolidates its year-to-date gains. 

The Nasdaq coming within 50 points of my most recently upwardly revised target for that index at the 12,250 level. It pulled back on Friday, but not a big surprise after… 

About a year ago at this time, the stock market was chasing support levels, especially the Nasdaq which seemed to be breaking through one support level after another. This year, is certainly a different picture… 

Yesterday’s action was the latest indication that last year’s double bottoms in September & October among the major market indices might have been quite substantive and predictive of what was to come. 

Stocks finished on a strong note with yesterday’s performance which wrapped up January. The old adage, “As goes January, so goes the year” once again favors the bullish camp. 

Technology has been on a tear since the start of the year, which is certainly a contrast to what we saw a year ago when 2022 began. 

It’s become a challenge, if not a competition, among economists to predict just when, if at all, a recession will surface. 

Resiliency is a developing story and an emerging characteristic for the stock market in the early weeks of 2023.