Optimism Continues To Build Up...

The Dow closed slightly upwards by 48 points today, retreating from its intraday high. Indeed, it is nothing strange to see a few sideways days like this one after every strong one day surge. This is further supported by the fact that investors are likely to remain cautious before the CPI numbers this Thursday. However, I do see optimism continuing to build up in the form of rising bond yield curve (see bond yield curve) and dropping total equities put call ratio (see Put Call Ratio). The broader market also displayed healthy internals with the only exception being the Basic Materials sector, which have been extremely volatile lately.