Futures action suggest an open of 11 points for the S&P 500. It’s amazing what a little potential government stimulus from a large economy like China can do. Even a European index is up.
Like it’s U.S. counterpart, bad news in China (the threat of GDP growth going under 7%) is good news for stocks since stimulus can’t be too far behind. That’s certainly a winning working formula for both the U.S. and China so far.
There is no corporate news of significance unless you consider the mergers going on in the pharmaceutical industry this morning.
On Greece, market participants expect a last minute deal, or some reasonable delaying action. Greece could still turn out to be the only well known black swan that the markets ignored.
The dollar is up and pushing oil down as usual.
February personal income rose 0.4% and personal spending was up 0.1%. Whoo hoo, but not huge enough.
The last two days of market action includes quarterly window dressing. As such I won’t bet against upside but upside will probably be limited to 2075 for the SPX. A halt at that level, and more important a halt and reversal, will show a developing Head and Shoulder pattern.
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