Yesterday’s markets showed remarkable resilience in the face of adverse news, such as the failed peace agreement and blockade. The Russell 1000 (RTY) led the pack, followed closely by the Nasdaq Composite (NDX) and the S&P 500 (SPX). Breadth was evenly split, with 250 names up on the day. Meanwhile, the VIX index dropped back below 20, indicating a decrease in investor anxiety. Crude oil prices are making their way towards the $100 level once again.

In terms of flows and liquidity, overall desk activity was rated as a 2 out of 10, with 5% of assets allocated to buy-oriented positions. The Technology and Finance sectors were the leading performers. However, volume was relatively slow, with US markets down 15% compared to their 5-day moving average. ETFs accounted for 30% of trading activity.

Squeeze plays and laggards from last week continued to drive gains, with Software (S5SFTW) up by 390 basis points, 12-Month Losers (GSXULMOM) up by 260 basis points, Rolling Most Short (GSCBSMAL) up by 190 basis points, and AI at Risk (GSTMTAIR) up by 388 basis points. Additionally, the Software vs Semis (GSPUSOSE) ratio was up by 430 basis points.

In terms of EPS preparation, investors are advised to keep an eye on the following key areas:

1. EPS Playbook – Big picture takes, most crowded names, and chat rooms to watch
2. Key Sector + Singles Debates – Important “bellwether” prints, sector debates, etc.
3. GIR on what the Q1 2026 earnings season will tell investors

The Goldman Sentiment indicator has swung from oversold to overbought in a 3-week period, with a current reading of 0.7. This indicates that positioning is becoming increasingly stretched.

Biotechnology was a relative outperformer today, driven by better data in the space this morning (RVMD +39%, ALLO +46%, SYRA +83%, IDYA +19.5%).

For those who missed it, some essential notes from the weekend include:

* Tony P’s net view is that the S&P will remain in a volatile trading range, where investors should fade at the edges and build long positions on pullbacks.
* John Flood provided a good rundown of flow dynamics, stating that this is the beginning of the end of the current conflict.
* Rich Privo noted that net, there’s still plenty of noise for investors to digest, but this is the start of the end of the conflict.