“Soft Landing” was the most talked-about phrase before the market opened today after employment data continued to rise strongly despite economic weakness in the industrial manufacturing sector. Indices generally pulled back slightly at the open under volatility pressure before the shorts-cover rally began to take effect with VIX plunging sharply throughout the morning, pulling SPY and QQQ through the important gamma flip levels at 420 and 350 with money flow concentrating in the energy sector after the gasoline and oil reserves report.
Investor sentiment has also improved quite clearly as the debt ceiling increase agreement passed the House, controlled by Republicans, and advances to the Senate, controlled by Democrats, where there is more support for the agreement.
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