There are many positive signals for the stock market:

• The Merrill Lynch High Yield Constrained Index minus the 10-yr. note, a measure of investor fear, has declined.



• The VIX is down.



• The MACD line, a measure of historical price changes, is flashing a "buy" signal.



• The treasury yield curve is steeper.



• The Fed funds rate, at 0.07% is unusually low.