With the equity bears remaining powerless, it was just another day for the bulls, with the sp'500 breaking a new cycle high of 2053. The VIX remains bizarrely low, having imploded from the 30s to the 13s. As things are, another 1-1.5% equity upside looks probable.
Suffice to add, the monthly chart has a pretty powerful bullish candle. How we close the month will be important.
No doubt, a very large part of the ongoing equity rally is due to the recovery in oil.
WTIC oil, weekly2
Note the upper weekly bollinger has now cooled to $44.40. The 43/44s look viable in the near term. Sustained action >$45 looks difficult, as the over-supply issue remains ENTIRELY unresolved.
Macro-econ chatter - Mr Long and Mr Shedlock
Tuesday will see the house price index, PMI manu', and Richmond Fed manu'.
*Fed official Evans is due to speak in the 12pm hour.
Goodnight from London