February's surprise correction is a mere flash in the pan in what is still a bull market for stocks, says the Mr. Market.
Investors piled back into stocks last week, putting a robust $5.3 billion to work in large-cap stocks according to data from Jefferies. Energy and momentum stocks saw solid inflows, while staples, utilities and other defensive groups saw outflows. Even the relatively high risk PowerShares QQQ ETF (QQQ) , an exchange-traded fund based on the Nasdaq 100 Index, roared back with a nice inflow of $888 million.
The S&P 500 fell by 10% for the first time in 500 days this month, but has quickly rallied and is now is just 6% below its all-time high. "A recession is unlikely as deregulation and tax reform have lifted consumer confidence and business optimism to highest levels in years," points out Goldman Sachs strategists.
So much for that brutal bear market.
The market could find fresh reasons to keep rallying this week. Major retailers such as Walmart (WMT) and Home Depot (HD) are expected to announce solid fourth quarter earnings and 2018 outlooks thanks to a strong jobs market and tax reform.
Dow futures fell slightly as of 7:15 p.m. EST. Monday as investors look to return to trading after the President's Day holiday.
Watch TheStreet's Jolt web-show below to get more insight into the week ahead.