Big gap up

The market was due for a bounce Monday because the internals had fallen to extremely low levels. There are only 27 stocks within the S&P 1500 above their 10-day MA and only 51 above their 20-day – I can’t remember seeing readings that low…especially considering just a week before there were over 1000 stocks above their 10-day. On Friday, only 3 stocks made a new 52-week high and only 7 made a new 10-day high. And 3 of the last 4 trading days saw decliners out-number advancers by at least 10-to-1. Then I logged on to check the futures and saw they were up 40 – wow. I’ve see big gap downs when bad news hit, but I can’t remember such a gap up. Right now S&P futures are up almost 50 and Dow futures are up 370.
The reason for the gap up –>> Europe agreed to a nearly $1 trillion rescue plan and the US Federal Reserve said it would provide loans overseas. So what else is new – capitalize the gains, socialize the losses. Whether it’s AIG headed for bankruptcy or Greece following the same path, if they do well, they get to keep the money; if they don’t do well, the losses are spread out to everyone. Bad behavior continues to get rewarded, so there’s no sense following the rules or being responsible. I wonder what is being taught in top business schools.
The news of Helicopter Ben flying over Europe isn’t small and insignificant. Here’s the S&P daily. There’s no sense drawing trendlines. That blue line is where the index will open today (as of the futures indications right now).