MORNING VIEWS

The morning trade will be interesting as more inflation data points appear for the Fed Heads to absorb. Futures are flying higher off the potential Liz Ann Sonders "flight to cash" bottom from yesterday.

Semis get upgraded by Goldie and Investor's Intelligence survey finds a drop in bullish sentiment to 38.7% from 40.2% and a rise in bearish sentiment to 34.4% from 31.5%. These are the lowest bullish readings since Oct 2002 and highest bearish reading since April of 2003. October of 2002 was the bottom in the market when the SPX hit 800. More food?

The chart above shows that as of last night's close, more than 80% of the SPX stocks are trading below their 50 day SMA. Similar stats at other market bottoms such as April 05, October 05 and August of 04.

On a final note, if inflation were the driving force behind this market decline, bond rates would be higher and commodities would not have crash landed. Hey Bennie, worry about a recession from higher rates please. Thanks much.