Following yesterday’s rally, the percentages of S&P 500 stocks above their 5, 10, 20 and 50-day moving averages are now at 59%, 39%, 27% and 26%, respectively. This tells us that more stocks are either beginning to rise or stopped declining relative to last week. As a result, we are now between oversold and neutral in the short term.

However, short-term direction will likely be influenced by the economic data released this week, namely; PPI, Retail Sales, CPI, Industrial Production and Housing Starts, in that order.