We're much too oversold for shorting based on the NYMO yet the VIX, while rising, has a long way to go to reach fear levels.
The Alcoa report was nothing if not humorous. They've been talking this quarter's report down for so long analysts were sucked-in. Now they beat much reduced forecasts causing a short squeeze in afterhours trading.
The Fed's Beige Book is due at 2 PM and that may be the catalyst to rally. Fed governors are still in full campaign mode including Wednesday's Lockhart, George, Rosengren, Bullard and Yellen. They want their policies to be rewarded by higher stock prices since egos are at stake.
Let's see what happens.
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