Short Term Trading Week Starting: 11 Mar, page-32

Late Session Update

We are seeing a technical bounce from the 200 day moving average in the SPX. The ES profile for the June contract is seeing 2785 and the SPX is sticking to 2780 or +1.39% with less than an hour to go before the cash equity close. A combination of short covering and a bit of new money is involved. The VIX has lost 10% intraday and is now sideways at 14.48. Breadth has been strong today with A-D lines +1631, NYSE breadth: 5.57:1 and NASD breadth: 4.81:1.

Some supporting drivers of today's US rally are:

• China reported its exports were up significantly in March, altering the y/y numbers positively and offsetting last week's dismal export data.

• US Retail Sales came in better than expected.

• Sunday night's airing of a 60 Minutes interview in which the Fed Chair reiterated that rates are on hold until more can be known about the world economy

• BoAML upgraded AAPL to a buy from neutral. The tech sector is leading today's relief rally.

• The GBP is up and trouncing the currency majors on hopes for Brexit deal stuff.