Julien Ponthus shows you a glimpse at tomorrow’s markets.

You might believe that CNN’s most popular indicator of investor sentiment is based on “extreme fear” and it will take some really good news to boost markets today.

Yesterday’s COVID-19 optimism in China and good U.S. retail data were all that was needed to bring global equity markets back to a cheerful bullish mode.

Many investors wouldn’t touch tech and growth stocks with a bargepole. However, they outperformed Microsoft (NASDAQ), Apple (NASDAQ), Tesla (NASDAQ) and Amazon (NASDAQ), lifting the Nasdaq higher.

BofA’s “extremely beary” monthly survey revealed that funds managers have not been as stock-weighty since May 2020. It was difficult for this upbeat mood to be reconciled with BofA.

The dollar was also pushed further from its two-decade peak by supposedly weary traders who rushed to make riskier bets in Asia, Europe, and cyberspace. Bitcoin claimed $30k.

The dollar enjoyed an upward momentum thanks to its rivals, as well as fast-rising bond yields that showed confidence central banks could continue monetary tightening despite persistent recession fears and Citi’s economic surprise index dropping in negative territory.

Jerome Powell of the U.S. Federal Reserve, who insisted that interest rates could go to as high as necessary to control inflation did not stop buy-the-dipers.

The latest data from Europe may make the bulls pause before they attempt to continue this tentative rebound.

Take this as an example: Japan just announced that its economy contracted in January-March, China reported new-home price drops in April and Britain revealed its highest inflation reading in over a decade with 9.9% in April.