The calendar is very light and there aren't many market moving events scheduled this week. Stocks have tested the downside intraday and they have rallied back before the close. This pattern has developed in the last few days. We are caught in a range and the market is searching for its next catalyst. The news is generally positive. Rumor has it that Greece is getting closer and closer to a deal. European banks have been tapping the ECB and they are catching a bid. Bond auctions have gone well and Spain is even considering a syndicated offering.

Last week, the market broke out above resistance when the jobs report came in much better than expected. PMI's in Europe and Asia were also above estimates. This is a very quiet news week and the momentum should allow stocks to inch higher. Domestic economic conditions have been outpacing the rest of the world. ISM manufacturing and ISM services came in better than expected last week and GDP rose 2.8% in the preliminary reading. The optimism is growing. Credit concerns in Europe have subsided. The ECB provided a massive liquidity injection and interest rates have declined.

Will the beginning of the “anticipated” correction come tomorrow?
The Nonfarm Payroll report is often a market mover and I expect to see much of the same tomorrow.
The market is wound tight and typically when that occurs we are witness to a large directional move.
I expect, regardless of how positive (or negative) the report is tomorrow, [...]

“What do you think about the latest economic report, data coming out of Europe, etc?”
That’s a question I often receive. My typical response, I don’t care. Okay, that may be a bit harsh, but it is true. For the most part I really don’t care about the daily news that flows in and out of [...]

The markets will be pretty quiet this week as many traders extend their holiday. Stocks jumped last week when we learned that European banks borrowed €498 billion from the ECB. They used the proceeds to pay down more expensive debt, fortify balance sheets and to purchase short-term sovereign debt. This temporarily soothed nerves. The ECB's balance sheet has grown to a level not seen since the peak of the financial crisis in 2008. Most analysts see this as the "bazooka" they were looking for to stabilize financial conditions.