Interesting day today.  The S&P 500 surged over 2.5% on better than expected ISM figures and a huge global rally.  China PMI data lit the initial spark and the Shanghai  induced rally didn’t stop until the bell rang in New York.

Oil and tech were big drivers of the rally as semiconductors surged over 5%, the QQQQ’s rose over 2%, oil rose 2.5% and natural gas jumped 10%.  Curiously, financials did not participate in the rally.  More curious was the incredible surge in treasury yields in the face of rising stock prices.   This is not a welcome development to the underlying trend here.  The S&P will not continue its surge higher without the banks and there is almost no chance that the economy can rebound in the face of higher interest rates.  We also saw a very odd occurrence where the VIX surged 3% higher today while stocks also rose.  This could be a sign that the smart money is buying downside protection.

The dollar continued its trend lower and now appears very oversold which could prove to be a headwind for the markets in the near-term.