Equity traders breathed a sigh of relief on Tuesday after a round of better than expected earnings. Reports from Johnson & Johnson and Hasbro helped lift the broader market as did reports from a number of mid-sized and specialty finance companies. The S&P 500 gained more than 1.70% at the high of the day and may move higher in the near term but investors are urged not to become complacent. While there seems to be a bottom in stocks the trend is sideways and not up. In this scenario, the S&P 500 will probably hit a top near 4,800 which will keep prices contained.

Better than expected economic data helped to lift stocks as well. The April read on Building Permits and Housing Starts were both above the consensus and pointed to ongoing strength in the housing market. While construction has been constrained by labor and materials shortages demand remains vibrant and ready to build. The market-moving event on Wednesday will be the Fed's Beige Book.