Stocks and bonds steadied after last week's blockbuster rally. Investors are now carefully analyzing the undercurrents to determine whether the recent upswing was merely a position readjustment or the harbinger of a sustained rally as the year draws to a close. Fresh economic indicators, coupled with a more accommodative tone from Federal Reserve officials, have kindled optimism among market participants that the interest rates are reaching their peak.

This week is very light on the economic front. Later this afternoon, we will get a read on bank lending conditions when the SLOOS comes out. The last survey showed that banks reported tighter credit standards and weaker loan demand from both businesses and consumers. This was evidence that the higher interest rates for longer are slowing down borrowing as intended. We expect more of the same in this report.

To note: Newton scores are now being sorted from largest to smallest based on their current score. Broadly, scores were higher. Small and mid-caps hold a slight advantage. Under the surface, Technology and Financials are leading while Energy and Health Care are lagging the most.