- Asian markets traded 0.7% higher.
- European markets are trading 0.4% higher.
- US futures are trading 0.6% higher ahead of the market open.
Economic reports due out (all times are eastern): ICSC-Goldman Sales (7:45), Consumer Price Index (8:30), Housing Starts (8:30), Redbook (8:55)
Technical Outlook (SPX):
- Hard bounce yesterday that took price through the resistance area in the 1950's.
- Yesterday confirmed that the current move is much more than a dead cat bounce and should be expected to make another run at SPX all-time highs.
- Right now SPX is back in the consolidation zone that SPX was stuck in during the entire month of July.
- 50-day moving average was reclaimed yesterday after struggling with it on Friday.
- Volume was about average
- SPX back in overbought territory.
- VIX dropped another 5.2% down to 12.32 yesterday.
- It doesn't seem to me that there has been a significant short squeeze intraday in this market recovery. The bounce has been fairly orderly. Not a lot of panic by the bears trying to exit their short positions in mass.
- Inverse head and shoulders pattern that I mentioned Thursday is playing out perfectly so far on the SPX 30 minute chart.
- The market doesn't care about the economy nor earnings. That is not what is driving it. The market only cares about what the Fed is doing to keep equities propped up.