Quite extreme ST euphoria and exuberance but this can continue for at least another week to SPX 4100/25. Pullback most likely followed by an IT HIGH and then down. This is from a FOREX page I use for USD analysis:
"Equities remain in monster rally mode, ignoring everything that could potentially make them sell off. We are now nearly 100% higher since the 2020 Covid lows – a frankly astonishing feat. It seems that monetary and fiscal stimulus is a force that overpowers everything else, pushing us to new all-time highs. Last week the S&P500 index rose 1.6% to 4039 points, and the DAX gained 2.2% to 15203 points.
Bonds had a forgettable week, with the US Treasuries remaining dislocated to most other major government bonds. The 10y Bund traded sideways and remains in negative yield territory, but the 10y UST yield is still above the breakout point. The global search for yield and relative value trades could be a strong force that drags the yield lower, but for now it remains above 1.50%. Last week it rose 2bps to close at 1.68%.
....The Week Ahead:
Why should the week ahead be any different to the previous one? Is there any reason or trigger that can cause risk assets to move lower? The market seems to think that it’s a one-way train, and for now bulls are well in control. Data-wise we have some employment and PMI data which could be interesting, but it’s otherwise a quiet week. Good luck! "