It’s been an amazing session with the Nasdaq shaking off some losses, after recent economic data points to further moderation in inflationary pressures.

The CBOE Market Volatility Index (VIX) is range bound and below 19.00. Contrarians point to that as a buy signal, and recently it has pointed to market strength.

Investors are doing some bargain hunting, targeting high beta names. Communication Services (XLC) and Consumer Discretionary (XLY) are showing relative strength followed by Technology (XLK). 

Retail Sales numbers will be out tomorrow, and Bank of America expects it to be brutal, with a decline of 0.8%. Using their own research on debit and credit card spending, and historic trends, the firm in most cases is spot on.

For now, it’s still a wait-and-see environment.