Perhaps it is priced in, but earnings estimates are proving to be too low and macroeconomic data suggests there is a lot of time left in the current economic cycle.

The recent increase in COVID-19 cases is likely to blame for the technical signal last seen just prior to the very first wave of cases, but that means at least one key trend is going to continue.

Industrial Production adds to the story, but volatility continues to be the trade as indications of another earnings season with historical level upside surprises.

A continued trend in jobs, increased liquidity, and continued upside to earnings in the coming weeks, suggest weakness ahead of earnings season should be bought.

The FOMC "hint" gave us a volatility signal consistent with our primary trading theme for 2021 - just ahead of another likely print in the Durable Goods New Orders data.

Hints of a hint from the FOMC may be a wildcard against strong market sentiment, but the data for the week should be positive with room to go.

The employment report disappointed once again, but also once again there appears to be stronger underlying employment strength and the results likely mean additional liquidity to come.

Despite last month's disappointing jobs report, there is still upside room to May estimates and with room to go before a return to normal, the overall conditions appear to favor stock prices.

The decline in sentiment in recent months is either a divergence warning of a large selloff, or created a point of bearishness that another rally can begin... which leaves us with what the economic data is telling us.

The higher-than-expected increase in the CPI brought some much-needed fear into the market, but it is important to keep in mind where we are in the cycle.