I wrote Thursday that I sensed investor sentiment may be changing and this morning’s future’s continues that thought.

Two days of trading does not make a trend of course, but if the equity market is a price discovery market to determine the outlook 6 months from now, then these moves make plenty of sense.

There of course will be choppy trading, but I believe the trend will be toward the upside as I cite former Fed chief Alan Greenspan’s “animal spirits” comment on investor sentiment.

President Trump’s announcement Thursday of promising drug treatments being fast-tracked for wider testing against the Covid-19 pandemic offered the ray of hope for investors.

In the next two weeks the US will see the number of cases will soar due to additional testing. This is now well understood by investors and should not shock the market too much.

In Friday’s premarket we see stocks and commodities making large moves higher, while the safety securities of bonds and dollar trading are being sold off.

Now, I understand there is massive Fed intervention in the markets. But the rise in stocks is not an investment Fed chief Jerome Powell can be directly involved right now. No these are the institutional investors feeling it is time to take positions in beaten up blue chips.

Dow futures at 5:30AM are looking to open up 885 points or 4.5%. A similar move is indicated for the S&P 500 also.

I will be back later today with more news.