Stocks rallied following yesterday’s beat across a wide range of economic measures, suggesting that investors don’t think the Fed will hike by any more than 25 bps next week.

Futures are off modestly following this morning’s data dump which shows income on track while spending missed amid a 5% annual increase in PCE.

continued for members…

The bigger picture shows the same kind of dip we’ve had most every day this week – all of which were bought aggressively to the point where ES/SPX shows signs of breaking out.  The breakout is mild at this point, and we’ve had them before. But, the effort that’s going into keeping indices aloft in advance of next week’s FOMC meeting is significant.

Prior FOMC decisions are marked with white arrows below.  Perhaps significant, COMP’s breakout reached its SMA200.  A failure to reverse would be quite bullish for stocks in general. As before, VIX is contributing mightily to the meltup.While, currencies remain flat…

…as do oil, gas and the 10Y.

Stay tuned…