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The stock market tried its best to rally on Monday, but with major EPS reports, a Fed decision, and an employment report looming, higher prices attracted sellers and the major indices finished flat. This week could be a defining moment for the market, with stocks either continuing lower in the near term or with the pullback ending and new highs just around the corner. We would bet on the former, as there is no indication from the recent price action of the S&P 500, Nasdaq, and Nasdaq 100 that the selling is over. While the tech-heavy indices, industries, and mega caps have worked off overbought momentum conditions on a daily and weekly basis, we have not yet cycled into oversold territory on a daily basis. Do we have to? Absolutely not -- but it probably would be healthy. The last time Technology indices/stocks were oversold on a daily basis was on April 19 -- but just barely, with the 14-day relative strength index reaching 30. The last time tech was oversold on a weekly basis was in mid-2022 -- and prior to that, during the pandemic. Long-term relative strength leadership rarely cycles into oversold territory on a weekly or monthly basis except during mega meltdowns and crashes. Consumer Discretionary (XLY +1.7%) led the S&P 500 sectors on Monday as TSLA jumped 5.6% after getting smacked last week. Communication Services (XLC +0.9%) was next, helped by beaten-down stocks like DIS, CMCSA, and CHTR, all up 2.5%. Energy (XLE -0.9%) was the weakest sector as WTI fell to $75.90/barrel. (Mark Arbeter, CMT)

The Vickers Top Insider Picks is a daily report that utilizes a proprietary algorithm to identify 25 companies with compelling insider purchase histories based on transactions over the past three months.

Sensata Technologies is a global supplier of sensors for transportation and industrial applications. Sensata sells a bevy of pressure, temperature, force, and position sensors into the automotive, heavy vehicle, industrial, heating, ventilation, and cooling, and aerospace markets. The majority of the firm’s revenue comes from the automotive market, where it focuses on bumper-in applications.

Varonis Systems is a cybersecurity vendor focused on data privacy and security. The firm is currently undergoing a cloud transition as it weans its on-premises customers over to its cloud products that are delivered as software-as-a-service. The New York-based firm was founded in 2004 and went public in 2014.