Celestica, formerly a captive manufacturing division of IBM, became a separate electronic manufacturing services (EMS) company in 1996. Celestica provides end-to-end product lifecycle solutions for a range of technology markets, including communications, servers, storage, and consumer electronics. It also serves diversified nontechnology markets, including industrial, automotive, capital equipment, and medical. Based in Toronto, the company has over 23,000 employees.

The board is green. Stocks are making a strong comeback after a wild ride this week. The Mag7 are split, some up, some down. The big driver today is inflation data that is showing progress on prices continuing to track lower. The Personal Consumption Expenditures index came in at 2.5% in June, slightly below the 2.6% in May. Core PCE printed at 2.6% for June, unchanged from May. Next week is a biggie. The July Jobs report is due on Friday, four more of the Mag7 report - Apple, Amazon, Microsoft, and Meta, and oh, and there's a Fed rate meeting - though no rate move is widely expected.

Market sentiment is a secondary indicator -- and many times being contrarian and going against the crowd will hurt you in the stock market. Extreme bullishness can go on for months or years without a big decline in share prices. Extreme bearishness is better for timing the market because stocks most often go down faster than they rise. Market participants can be correct for long stretches during a bull market, but at the end of a massive advance, they often are hung out to dry. Sentiment is a lagging indicator that mostly is based on price action and volatility. When the market trends higher on a consistent basis, the masses feel like geniuses and load the wagon with stocks. This has happened now with the semiconductor stocks that are already benefiting from AI (or those that will soon be), especially since early 2023. But something strange is afoot, as some sentiment indicators are exhibiting a healthy dose of fear while the major indices are at/near all-time highs. Hedge fund exposure to stocks has fallen off a cliff, while there are very low readings from the CNN Fear & Greed Index. One might think this is a contrarian bullish sign, but pessimism toward stocks in a strong uptrend historically is a warning. For stocks to go higher, more and more market participants need to get bullish and fund the ever-rising prices. Interesting indeed! For the market, the major indices and the stocks that have done the heavy lifting look tired and in need of a rest. (Mark Arbeter, CMT)

To sum up the current stock market, "bend but don't break!" And yes, that is typical in a bull market. The S&P 500 (SPX) fell to 5,192 on Friday, about 10 points from its flat 50-day average and almost exactly at its 10-week exponential moving average (EMA). The index then blasted off, closing 86 points off that low. The SPX is back above its 21-day exponential average and the false breakout (generally bearish) on 5/1 may be put to rest. The major indices are still in short-term downtrends, but Friday's bullish reversal was impressive and left many bullish hammer candlesticks on the daily and weekly charts. This week could be telling. Will we burst out to new highs and continue the uptrend off the April 19 low, or see another leg lower? The Nasdaq 100 (QQQ) also was very close to its 50-day on Friday and, like the SPX, bounced off its 10-week EMA. Strength late last week was seen in the small- to mid-caps, which were hit hard since mid-May. Both the S&P 400 (MDY) and the Russell 2000 (IWM) lost their 50-day last Wednesday, but quickly recovered the average. Most of the weakness of late had been in the smaller stocks and led to deterioration in breadth. It is possible that the MDY and IWM are tracing out bullish continuous inverse head-and-shoulders patterns. If so, that would mean new MDY all-time highs and new IWM recovery highs.