However, this bounce could continue until Wednesday's Fed announcement, as the NQ8 and the small caps are displaying a positive divergence.
The whole market has gradually been pushed higher due to a weaker Yen/US$ and Euro/US$ that are a consequence of expected higher Fed rates next week.
Treasuries were sold (but the LEV still looks strong).
Index investors are staying on the sideline for now... they could even be starting to sell higher prices.
The big negative is to be found in the Futures markets: investors are not buying this bounce. This doesn't indicate that markets will pull back today, but it tells us not to be long going into the FOMC announcement.
On the energy front, we can see much negativity both in oil and Natgas futures. Better avoid energy producer or driller long positions for now.
Conclusions:
Yesterday's bounce can easily continue for a few days, but except for the carry trade money, there is not much to fuel prices for now.
