The dollar is down. Oil and copper are up. Gold and silver are getting hit hard. Bonds are down a bunch.
It’s all about France coming out of the weekend. They had their presidential election, and although it’s not decided who will win (the top two candidates will do a run-off on May 7), it’s likely the pro-EU candidate will beat the anti-EU candidate. This has caused the Asian/Pacific markets to mostly post solid gains and Europe to posted its biggest 1-day gains in a long time. I can’t remember the last time there were so many markets up 2, 3 and 4%.
S&P 500 futures are up 30 – can’t remember the last time I saw that.
The indexes have been stuck in a rut for a few months. I can’t even say rallies have gotten sold and dips have gotten bought because there have been virtually no directional moves within the ranges.
Many groups are in the same boat – they’re unchanged going back a couple months.
The indicators are mixed – some would be supportive of a rally attempt, others would not.
Can the news out of France begin a directional move? We’ll see. In the weekly report published over the weekend, I laid out what needs to take place for a rally attempt to sustain itself.