Money came in mostly the largest stocks, but also the most shorted sectors.
We can see below that both the NQ100 and the S&P500 Futures display reversing TEV patterns,
which look similar to the reversing TEV patterns of QQQ/SPY
Below, we can see that the 10Y Yields are slightly pulling back, but
more importantly, the difference with the high quality bond yields is decreasing, which is equities bullish. The same occurred starting on March 9 just before the market bounce of March... which eventually failed, but this would be another story.
Hence, the $SPX could very well bounce past its $4100 resistance to reach $4200.
Also, adding fuel to the fire are the Reverse Repo operations that crossed over 2T$. We should expect a bounce next Tuesday, which is the last trading day of May. Hence, this equities bounce will go until early next week.
Conclusions:
Stay long until end of May.
