By Bryan McCormick
Asian markets finished higher overnight, but nothing to the degree of US trading yesterday. Europe is in positive territory, but markets there have the look of a consolidation day, moving sideways in a moderate range after yesterday's big jump.
US stock index futures were flat to down when I began writing this brief note but jumped as soon as 8 a.m. ET rolled around, though they are erratic.
In sum, there is little news to substance that appears to be moving stocks. That isn't to say there isn't any news, just that stocks are not particularly responsive to it. The tone of the markets -- whether in currency, commodities, or stocks -- is positive but subdued.
In many respects, if what we saw yesterday was a true turn, this is perfectly normal behavior: News could continue to be mixed to bad, but stocks may perform well. The alternative explanation for yesterday is that this was short-covering ahead of the long Memoral Day weekend, which for many began yesterday afternoon.
We may have to watch more technical factors to get a handle on the next likely moves in the markets. Although most rallies begin with short-covering, they can't be sustained by that alone.
Disclosure: No positions
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