Once the Fed starts cutting interest rates, the path of stocks comes down to whether or not the economy avoids recession.

At this point, I still maintain that the message coming from the stock market is a positive one for the outlook.

For example, the recent price action and setup in steel stocks is worth noting. The SLX steel ETF recently broke out to new all time highs from an ascending triangle where resistance was near the $70 level.

Price is now back testing that resistance level as support and turning higher.