Our model readings are improving from last week after optimism grew rapidly on debt ceiling talks. Mega caps continued their dominance while breadth remained steady. We are right near the 4,200 resistance level on the index and the theme in the overall market remains the same; large caps over small caps and growth over value.

Debt Ceiling: There is some more optimism on negotiations as Joe Biden and Speaker McCarthy are scheduled to meet today after the two had a "productive" call yesterday. These talks come after Republicans had a temporary walkout on Friday, sending markets lower. Click here for more.

Fed speak continued into this morning as St. Louis Fed President Bullard sent short-term yields moving higher after saying he is thinking of two more rate hikes this year. The Fed will get an inflation reading from their preferred PCE gauge this week.

Among sectors, the story hasn't changed as we are seeing strength out of a few sectors like Technology, Communications, and Consumer Cyclical. At the bottom of the pile are Utilities, Energy, Materials, Real Estate, and Health Care. Picking names with relative strength within sectors has remained the dominant and most effective strategy.