Considering the bullish close and VIX situation from last week, the gains we saw today were anticipated for this week inline with the positive outlook for the week noted in the previous post. Seeing all of the gains in one day was a bit of surprise. From the lows of 03/25 to the highs of today, S&P is already up by 84 points. Hourly charts are over-bought but they can continue to remain so. It is possible we consolidate a bit here primarily because bonds will now uptrend for 1-2 days.
US Dollar closed almost unchanged. However, further gains are expected inline with up trending daily cycle.
On economic front, February retail sales declined by -0.2%. Auto sales jumped 0.7%, retail sales excluding autos declined by -0.4%. March Manufacturing PMI came lower at 52.4. Inventories continue to build up higher by 0.8%. March ISM manufacturing index came at 55.3 with strength in new orders, employment and weakness in exports, inventories.