What do you think was the main driver of the market last week? The big news, which really drove the markets, I'm thinking that was Biden signing the 1.9T stimulus package.

On this week's Week Ahead:


Tech is facing a two headwinds. 
S&P500 unwound mid-Feb overbought - pullback test to late-Jan low just under 3,750
US Banks have been rising since January
Crude Oil: Overall trend remains bullish - rising trendline making consistently higher highs and lower lows 
Rates: Monday yield on the 10-year Treasury rose to a new 52-week high, closing at 1.59%. 
INFLATION: Worried? In the near-term, the upcoming YoY trends for headline inflation are going to look terrible thanks to “base effects”. Ignore that noice - the pandemic induced price declines last year make the data useless
Feb 2020 employment 152.5M
After rising slightly first week of March, initial jobless claims were again lower last week at 712k, which was 13k below expectations. 
Last Thursday’s Flow of Funds from the Federal Reserve revealed that total debt is growing at the fastest pace since the fourth quarter of 2004 with corporate debt sitting at more than half of GDP. While that sounds bad, at the moment corporate interest payments are only about 4.2% of corporate debt so that while the level is high, the service costs are low… at least for now. 
Big Question - are we going to see a repeat of the post-Spanish Flu Roaring 20s?


Bottom Line


Bonds can rally when stock market rebounding
Reminder, that after the roaring 20s when the stock bubble burst, the low of on the Dow in 1932 was 40% BELOW where it was at the start of 1920


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Resources: Tematica Research | Chris Versace | Lenore Hawkins

In Case You MIssed Last Week's: The Week Ahead: Data Might be the Key Commodity of the Future