Tentative stability - into a post-Fed weekend is pretty encouraging. While I'm pleased if a stronger economy, good guidance, and a waning-Fed tightening trend combine to boost optimism, I have to be skeptical about August/Sept.

So sure, inflation easing, breadth improving or the 'hungry' money managers who generally missed the year's first half, can contribute to softening purges; at the same time I'm less worried about milking S&P for more. Nevertheless it is an environment that can enhance small-cap or innovative companies 'if' it's just happening that some of their plans come to fruition in this time.

I view the valuation criteria as mixed; not terribly scary; but definitely not any sort of S&P bargain day, with a few exceptions. The strong tech stock trends are fine, and beyond what they generally merit. However it's the back-filling of mid and small cap techs that is really helping; while some Oil & Banks chime in a bit too. It's the bigger leadership that is extended are sort of frothy.

In the late '80's and '90's we had extraordinary tech multiples; and this is not a time like that. If it proves to be 'Goldilocks' time (she has indigestion at times I notice); they can shuffle around (as they are) and selected other stocks sort of in the 'also' tech categories can move up; and that's the value opportunity and trap that seems to alternate with some of these stocks. (Hence was 'sprinkled' to diversify risk and content if one or two out of five or six really do well while a few others meander and in some cases perk-up down the road, or not.)

In-sum: got our Friday rebound; which didn't really struggle, and analysts now have figured-out things aren't so negative. Well that's been my point.

So we get more attempts next week presuming no weekend fiasco.

The posture of this market remains the same. I tend to believe S&P strength is nearly exhausted for the short-term; but not necessarily for down-the-road.

Meanwhile . . . good action in most of the sprinkled stocks... I think money managers actually are scouring for value where they can and recognize that most mega-caps need to be hedged or less of an outside portfolio proportion.

Bottom-line: market exhaustion into the 'Dog Days of Summer' is erratic and is not expected to be any sort of calamity (barring exogenous events); given a propensity of money managers who missed the year's first half, to buy dips.

In this expensive S&P setup; it can still rock around a bit and try bouncing as a slew of money managers and strategists rationalize their abandonment of a large portion of the market in the year's first half; but over-ebullience for now.

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