The market is shaking off some of the recent losses and marching higher helped by latest results from Nike (NKE) and economic data.

December Consumer Confidence increased to 108.3, hitting its highest level in eight months and easily surpassing expectations of 101. Consumers’ assessment of both the present situation and expected future conditions improved.

Existing home sales dropped more than expected in November to 4.09 million vs. 4.2 million expected.  Monthly supply rose to 3.3 and median selling price increased 3.5% to $370,700.

Energy is overtaking Technology and Consumer Discretionary this afternoon. WTI crude reached its best level in over two weeks after the latest weekly inventory report from the EIA showed a draw that was much bigger than analysts’ expectations.

Solid earnings are instilling some confidence into the market. A level to watch for the S&P 500 is 3,850 and above 3,900.