The market appears to have reached an inflection point of sorts.
Bad headlines no longer shock the markets; stocks rallied and corporate credit spreads closed tighter as treasury bonds sold off.
Corporate cash bonds continue to trade heavy but that is due primarily to technical factors: an abundance of new supply and reluctance on the part of dealers to stay too long risk.
Real-money buyers are also staying out of the way for now given high dollar prices for cash bonds on account of where treasury bonds are trading.
We may be adjusting to a "new normal" of sorts with oil at $105; obviously if oil spikes higher, it could throw the markets back into a tail-spin.
But any new run-up in oil would likely involve the Iranians and they appear to be playing the waiting game for now.
Absent any escalation, oil could sell off the highs.
Even with Europe's sovereign mess, the market seems to be shrugging it off for now.
On the fundamental side, upcoming earnings by U.S. companies could provide some positive news with the outlook for small and medium-sized businesses also on the mend (albeit slowly).
Whatever happens, the U.S. economy should start to recover faster than other economies due to the inherent institutional strengths that the U.S. possesses.
Corporate bond new issues were relatively muted today.
GDP and University of Michigan consumer confidence numbers are out tomorrow.