The S&P futures are tacking onto yesterday’s encouraging performance despite sluggish econ data from the EU and UK.  The S&P futures are also ignoring strength in the Dollar and appear to be on a trajectory of their own these days.  Meanwhile, the futures are creating further separation from their highly psychological 1100 level.  Confidence is gaining in America’s economic recovery, particularly in comparison to the EU and UK.  However, uncertainties are still hanging around the globe, particularly in Europe.  On a positive note, the RBA decided to raise rates again today, a show of confidence in the global economic recovery.  On the other hand, China’s banks made a large cut in lending during the month of February, and it remains to be seen whether tightening in China will dampen recoveries around the globe.  Market volatility could pick up tomorrow with the U.S. releasing its Services PMI and ADP Non-Farm Employment Change data.  Investors are already trying to soften the blow from a potential letdown in employment data because of adverse winter weather conditions.  However, tomorrow’s data points could have considerable influence nonetheless.  The UK will also release its Services PMI data along with an HPI figure, preceded by Australian GDP during the Asia trading session.  Hence, there will be more than enough data to move markets tomorrow, not to mention ECB and BoE policy meetings on Thursday.  That being said, market activity could increase as the week progresses.  Meanwhile, the S&P futures have taken down some key barriers, although they still face our 3rd tier downtrend line.  Our 3rd tier downtrend line nearly runs through 2010 highs, meaning a more significant breakout could be on the horizon should fundamental and psychological developments create favorable environment for U.S. equities.

Thanks to Fast Brokers News.  Tomorrow should be a fun trading day!