That's A Wrap
The market didn't close at its highs, but it didn't give back all of its early gains either. For the week, the action was very solid. The SPX gained +1.6%, while the Nasdaq rallied +3.7%.
Bond yield remained low, finishing the week at 4.80%. And oil was probably the story of the week, finishing around $63.50. Other commodities have rolled over as well, with significant weakness showing up in the CRB Index. All of the above should help inflation expectations moderate, which is bullish for the broader market.
The ISE Index closed at 70 today, which is the equivalent of a 1.42 put/call ratio. Option investors continue to show disbelief in this rally.
With the markets short-term overbought, a pullback could surface at anytime. But with the macro picture improving and sentiment still negative, I believe buying the dips will be profitable.