As the AM tweet noted, Friday was a strong session in U.S. stocks, with solid momentum and strength. We traded nicely higher early in the overnight session and currently have consolidated there in the ES futures (chart above), holding above Friday's highs. We're currently trading at the R1 level; holding above the recent lows of 1026.50 on early selling would target the overnight highs and R2. Meanwhile, the U.S. dollar has recently weakened vs. the euro and we're seeing higher 10-year Treasury rates (now above 3.6%). Oil has also bounced higher. In all, the risk themes are pointing in a continued bullish fashion; as long as we're accepting value at higher price levels, you have to respect the market strength. I'll be watching NYSE TICK closely to see if the recent strong buying sentiment continues into today's day session and will post via Twitter (free subscription; follow here).
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