Today, we received updated consumer confidence data in the US. The data was extremely strong relative to consensus expectations (109.7 vs. 96.9). This data came after we also received the best initial claims data since the start of the pandemic. All of the indicators bode well for future spending:

This is being reflected in equity markets, which remain at all-time highs. However, from a trading perspective, the S&P 500 does not look like a buy right now, as it is in the middle of our trading range (equal upside and downside):

Momentum in the S&P 500 still remains broadly positive. However, markets are discounting less volatility than is justified by historical volatility, suggesting there is a possibility for a pullback. This pullback should provide a good entry-level for long positions.