Overnight futures rocketed higher on news of possible stimulus from China. Futures have since eased some with S&P500 futures up just over .4% pre-market.
The overnight pop met resistance at 2600, a level which has proven formidable previously.
In my opinion we are nearing the make or break moment for this recovery.
Earnings yesterday by Citigroup was met initally with a negative reaction, which was followed by an all day rally, sending the stock up 4%.
This morning analysts are out upgrading the stock. Could this possibly be foreshadowing the earnings season to come? We will find out this morning when $JPM reports.
Also note the VIX is back under 20 and in the meltdown stage, after its recent stay over 20, 25, and briefly over 30.
A positive move by financials, could be what sends this market over current 2600 resistance. And ultimately move the VIX back down under the key 15 level.