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Economic data has been "better than expected". Markets cleared the 20- and 50-DMA Tuesday, surpassing resistance to get back to previous highs. The MACD buy-signal was triggered; the market is somewhat overbought, so expect a bit of a pullback today following yesterday's 1.5% rally.

However, this is still a very much bifurcated market, with Tuesday's rally almost entirely in the mega-cap stocks, which are flush with cash. (Bankruptcies were up 71% last month among smaller companies, as higher interest rates began to really weigh on more highly leveraged companies.) This is not a market that is equally built across all sectors.

Most of the risk in the market now is in these small- and mid-cap companies. The strategy now is to chase stocks that have the least risk of bankruptcy.

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