The retail sales report today revealed better than expected growth for January. Retail sales grew by 0.3% (Expected: -0.3%), and excluding autos it grew by 0.3% (Expected: 0.2%). Therefore, it is not surprising that the market opened strongly today.

On the technical side, the market is still in good shape for a short-term continuation of the rally. However, it can become overbought in the short-term if it continues to rise at the pace we’ve seen yesterday.