On The 7th Day, They Rested

Stocks have been up for six straight days now, and the S&P has rallied nearly 7% during that time span. That is quite a run, and we quickly find ourselves with the major equity indexes back at overhead resistance levels.

Last night Intel (INTC) reported great results, topping expectations and raising forward guidance. That news boosted its stock by roughly 5%, and has also helped boost the semi index by nearly +2% while the rest of the market is lower.

In economic news, advance retail sales were lower than expected at -0.5%, although that is not as severe a decline as last month's -1.1%.

The strong INTC results also boosted sentiment in Asia, and those markets rose nicely overnight, led by Japan's +2.7% spike. European bourses were slightly lower this morning.

The dollar is up slightly in choppy trade. Oil prices are a bit lower to $76.65, and gold prices are also slightly lower to $1207.

The 10-year yield is lower this morning to 3.08% after a big rise the last several days. And the VIX is up +1.38% trading just below the 25 level at 24.89 currently.

Trading comment: After the six day rally, some backing and filling (read: consolidation) would actually be healthy action here. If the market can pull back slightly and trade sideways for a little while, I think the odds of it then rallying above its 50-day average go up. What I don't want to see is for the market to plunge from these levels, which would embolden the bears who are likely feeling scared about their convictions right now.

Earnings season has gotten off to a strong start, but it is still very early. I fully expect some big names to report results that are lackluster and elicit disappointing results in those stocks. But big picture I am looking for earnings season to be mostly constructive. So don't get overly optimistic on the strong reports, but don't get overly pessimistic on any disappointments.