The first chart shows the Aussie dollar broke out of a falling wedge and successfully backtested, which previous marked new bullish uptrends in stocks and commodities.
Source: Chris Kimble
This second chart shows the Indian Sensex in a similarly bullish technical formation.
Source: Market Letters
The third chart shows that Dax sentiment washed out fairly swiftly, echoing AAII sentiment for US indices, making upside appear more likely than down, from a contrarian perspective.
And the last chart shows capacity utilisation as a US economic proxy, revealing the Fed has kept rates too easy recently, making significant inflation ahead more likely.
Source: Scott Grannis
All four charts make pro-risk look attractive right now. Shorter term I am still looking for upside into the end of this week, and will then review whether or not to sell my bounce equity longs. There are more important earnings first, and I am aware the uptrend in place again since yesterday could yet be part of a longer B wave that began a week ago, in an ABC correction down. Alternatively, given how quickly capitulative breadth was reached, the low could already be in and a revist of the highs coming next.