Good Tuesday morning. Fridays 91% up-volume day in NYSE and yesterday’s 86.4% up-volume day produced remarkably strong back to back readings. We also just had back to back days with more than 90% up-volume days in the S&P 500. When this has occurred in the past, 2 months later the markets have been higher 100% of the time and 1 year later the markets have been higher 88% of the time (with thanks to Sentiment Trader). The internals have been garlic strong over the last 2 days.

We believe a significant short squeeze move higher is kicking in, based on front-running of two major upcoming events; this weeks Fed meeting and anticipation of Q1 earnings reports (which will be strong).  

We expect the FOMC statement and Fed Chair J Powells presser (Wednesday, beginning at 2PM EST) to reflect dovishness, which should act as rocket fuel for the markets. With the market having fast-forwarded into a correction and with signs that inflation is cooling (oil $66, friendly CPI, PPI) and with...