It’s lather, rinse, and repeat with this market. Stocks sell off one day on some form of trade or geopolitical tension wrinkle, they bounce the next because people want to buy the dip, they pull back again as things get sticky over those same two issues, and they recover again because this market just doesn’t want to break down. In the end, we’re going absolutely nowhere fast, and that’s just fine by the bulls, who are hoping to ride out this week’s moral victory until the closing bell.
So far today the S&P futures are up more than ten handles, and at session highs, after a monster rally in Europe (Stoxx 600 headed for biggest gain in a month) while Italy’s benchmark surged by almost 3%, and the Italy ETF EWI is indicated up after a sizable recovery in the past two days. Semiconductor stocks are looking up today (Reuters reporting that China still reviewing NXP Semi/Qualcomm deal may be helping) while Lululemon is poised to open at a record (up ~7% pre-market) after beating already sky-high expectations.