Republic Risk: Treasury to the Rescue?

Yesterday's sudden reversal in tech may provide a light at the end of the tunnel. Or maybe that's just speculation building that the Treasury and Fed are about to do something big.

Equity Storm Watch Is Yellow on the S&P 500 and RED on the Russell 2000

It was an interesting snapback rally yesterday, with the S&P 500 retesting critical levels and pushing us positive on intraday levels. Again, we’re just 0.72% and 0.75% away from the 20-day and 50-day moving averages of the S&P 500 SPDR ETF (SPY). with its relative strength index (RSI) and rate of change on the MACD improving. This morning's PCE Inflation reading is the primary focus - with earnings reports from Chevron (CVX) and Exxon Mobil (XOM) exhibiting some weakness. The PCE increased by 2.8%, which is higher than expected. 

• S&P 500 - Yellow

• Nasdaq - Yellow

• Russell 2000 - Red

This morning's big story is Google’s (GOOG) announcement of its first dividend of 20 cents per share and the authorization of a $70 billion stock buyback program, putting to work the $100 billion pile of cash Google is sitting on. The company reported strong earnings, and news of the buyback propelled Google’s stock by 15% in after-hours tra…