A solid reversal yesterday with Small Caps leading the market higher. Volume was lower on the session, but we have seen this story before. Tuesday's low is now a pivot and one worth watching. Energy rebounded as crude finally closed in positive territory. Good news is certainly seeing the Russell 2000 lead this market higher. We will need a bit more from this market to shed the extra weight of seasonality. Yesterday was a good start. Friday’s job report will become tomorrow’s focus for our lovely market pundits. We will be paying attention to what matters.

The Nasdaq has yet to digest post Brexit gains like the Dow and S&P have. Earnings season hasn’t helped with many Nasdaq 100 names reacting positively to earnings reports. Energy has been a drag on the Dow and S&P. It would be nice if the market as a whole would digest the recent gains a bit longer allowing for longer bases to setup. Volatility is non-existent and if it stays that way we really could see a big move to the upside. So much for what could be when our focus should be what is. We have a market in overbought territory with decent leadership. We need to respect our trading signals and risk management process. Outsized gains in your portfolio comes from obeying proper trade signals and a sound risk management practice.

This summer has been quite interesting. We had the Brexit vote and an interesting earnings season. Not to mention this market continues to shake off any hints of a sell off. Tomorrow this may change, but for now we have a decent market. Stay the course and you will be rewarded.