Tomorrow marks the 34-year anniversary of the 1987 stock market crash. On the Friday before the crash…

The VIX has retreated below the 17 level, which is approaching its longer-term baseline and that would imply that some of the worst fears have played out. 

Strong earnings results among the financials and the major market indices higher this morning. 

Financials have regained their longer term leadership stature in the stock market and this year we have seen good relative strength strides in many of the stocks representing this category. 

For some months now the stock market has been reflecting a just to normal; not a “new normal” but a more traditional normal – seeing traditional themes outperforming stay-at-home themes. 

In last Thursday’s trading the Dow surged above the resistance channel between 34,500 and 34,700, but by the end of the day it did retreat back into the upper part of that range. Seeing some further weakness this morning. 

The last 2 trading days have surely been encouraging with respect to price action in a number of stocks, sectors and themes; but to me the most constructive factor has been…

The money flow trend showing improvement in yesterday's trading, specially in technology. 

The Dow breaking below 34,000 yesterday but managed to close above that level on a closing basis — a technical victory. 

As we approach the 3rd quarter reporting earnings season the question becomes, “Just how much has the market baked in some of the headwinds imposed by…?”