This is a daily notebook by Mike Santoli, CNBC’s senior market commentator, with ideas for trends, stocks, and market statistics. The rally pause makes sense here, after a week of +3% and +17% in broad standards in less than two months. Against this backdrop, some drowsy will kick off a week in which China’s economic data disappoints, placing “slow growth” on markets as not a game changer. The strength of the Big Growth, coupled with continued bids in the space, is preventing any significant retracement at the moment. The bulls have satisfied at least a good portion of their proving burden in recent weeks, at least technically. The record of more than half of the bear market decline and with some breadth/momentum signals triggering bullish signals makes the June low look like a probable bottom for now and possibly in the near future. There are still some hurdles nearby just above the market, including the still falling 200-day average. As usual, after such a resurgence in risk appetite, debate raged between those who were quick to believe the market’s implied message and those who doubted that the Street was presenting itself as a the absurd story of solid economic growth and impending dovishment. by the Federal Reserve in turn. The Fed will no doubt view the easing of current financial conditions (stocks up, credit spreads and dollar down) as a counterweight to its efforts to slow demand and lower inflation. . However, if inflation declines decisively and/or the economy begins to wobble more, the Fed will not continue to be hawkish just for the sake of correcting financial markets. Oil/gasoline weakness is one of the bigger drivers that the Fed may soon ease oil prices and crude oil prices drop today. The way to deal with these views is to say that the big money became too bearish and not exposed to the stock at the end of June, and it was pulled/forced back as the band stabilized and earnings for see that American companies are still hunting on a healthy nominal growth momentum. There is probably still a bit more time for systematic/quantitative investors to rebuild their equity allocation once volatility has eased, although this alone may not return stocks to the regime. the market rate skyrocketed. Morning market headlines published on FactSet suggest that investors and observers are more skeptical than excited about the rally so far. Here’s a modest net support for the market: Market breadth is moderate despite impressively strong gains. Megacap’s growth is catching up a bit, but the “average stock” outperformance has been noticed this year. The equally weighted Russell 1000 drops below 6% in 2022. VIX hovers near multi-month low near 20. No real signs of divergence or warning here. The market has calmed down. Alternating action has gained some traction, and it is now late summer. Expiry VIX and options contracts in the coming days could shake the boat a bit, but overall the VIX reflects lower levels of stress from credit and macro concerns.