Small Caps, Internet, Cyber Security, and Regional Banks Keep Market Afloat

The S&P 500 ($SPX) looked like an early breakout candidate, running to 2120 mark, only to finish the day at 2114. The pivotal question now is what is keeping this market afloat?

For one, Small-Caps ($IWM) took a big leadership role yesterday with a 1 percent gain. Qorvo Inc. ($QRVO) ~ 1percent of the Small-Cap ETF ($IWM), was up about .70 percent. Regional Banks ($KRE) were up over +1.65 percent off an ADP employment number of over 202 thousand new jobs.

If the jobs trend continues (200 thousand plus) it will put pressure on the Fed to move rates. That is a positive for the Regional Bank sector.

Finally, I want to update the Internet ($FDN) and Cyber Security ($HACK) sectors. Internet names really popped yesterday catalyzed by big moves in Amazon ($AMZN), up 5.6 percent, and Facebook, ($FB) up 2 percent. Facebook is one of our top picks from the Tradespoon Scoop bullish stocks list. Cyber Security ($HACK) continues to move the upside up over 2.5 percent yesterday. This may be a little more of a short term move so tread lightly but with the recent attack on the IRS this is a space were building some exposure in best of bread names is not a bad idea.

Have a great trading day!