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Stocks Resilient with Breadth Surge outweighing Negativity surrrounding Short covering

Equities managed to recoup the entire 40 point S&P loss following the ECB, where initial positive gains post Draghi on a monstrous Stimulus were followed by a severe 40 point S&P drop on lack of Forward guidance, which of course, then again reversed to recoup everything that had been lost into late Thursday and surged above.   As of Sunday evening, equities are flat in early overnight trading, but have gotten overbought yet again, while TNX has soared up to near 2% and Crude oil managed to regain former highs and get above late last week's 38.45 area which had been widely discussed -  Given the HUGE surge in breadth of late, where popular technical gauges like the McClellan oscillator, along with Summation index, Advance/Decline and even Percentage of Stocks trading above their 50-day and 200-day MA have jumped OVER levels seen last November/December, while prices still remain about 4% below, this is thought to be a huge positive, despite all the talk surrounding Shortcovering and defensively led rallies.  Bottom line, a move up to near 2040 is indeed possible ahead of this week's FOMC meeting, which is sandwiched between the BOJ and BOE meetings this week.  One should look at using any pullbacks into early week to buy, thinking that additional gains can happen this week and through the weeks ahead, as we've seen little to no evidence of any technical damage in the trend from mid-February.  Meanwhile, Sentiment certainly isn't optimistic, even after a 12% surge from mid-February as many are coming out of the woodwork to try to sell this rally.  Given that Financials and Healthcare are beginning to join the participation, its definitely beginning to broaden out a bit sectorwise, and Utilities were trounced last week, as might have been expected with Yields jumping up above 1.90% (10yr)  Technically, this remains a short-term rally within the context of a larger bear market, but it remains early to sell into this move given the breadth move and one should still favor gains and higher prices