Week Ahead on Wall Street (SPY) (QQQ): Bear market rally is back but could it become a new bull

• Equity markets end the week higher as risk appetites are back.
• Bitcoin bounces sharply to drag in more trend followers.
• Tuesdays CPI data point the highlight of the week ahead.

Equity markets bucked a three-week losing run when they closed higher on Friday and completed a positive week for all the leading indices. Talk of 75 basis points failed to dent enthusiasm as investors flocked to all sectors including oil. Oil prices had taken a severe downturn last week as fears grew for the health of the global economy. But some further words of encouragement about supply cuts from OPEC+ and in-line economic data convinced oil bulls to return. The US SPR being drained even further was taken as a further bullish sign for oil as traders see it as needing replenishing sooner rather than later. Even Europe's energy woes could not dent the bullish enthusiasm and at least German electricity prices collapsed somewhat but are still sky high compared to this time last year. The ECB stepped up to the plate and swung for the bleachers when announcing its biggest rate hike ever, 75 bps, which seems to be the favorite number from central bankers these days. So is this rally the bottom or yet another bear market rally? Well, the last squeeze moved lower but failed to set a new low (so far). So the potential is definitely there for a bottom. But historically things don't really bottom in this type of environment.