Right now (at 1:50 AM) it's looking like the support level we hit in the ES on Friday is holding and all three futures are trading higher between 0.37% and 0.5%. Those kinds of numbers are significant. The ES daily RSI and stochastic in particular are not just in oversold territory, but have turned inflection points and that is a bullish sign. In addition, today's action (ie. the Sunday evening overnight) brings us fully outside the right edge of the descending RTC channel going back to the peak set on May 2nd and that is a bullish trigger.
The VIX meanwhile, was stymied in its attempt to go over its upper Bollinger band at 18.40 on Friday, just as I had predicted on Thursday night. With oil prices coming down, Bin Laden dead, and reasonable earnings reports coming out, I think the VIX will have trouble going higher tomorrow, implying that stocks will.
Finally, history is on our side. According to The Stock Traders Almanac, the Dow has been up 12 of the last 15 times on the day after Mother's Day. I guess all the traders have warm fuzzy feelings about mom that make them want to buy buy buy. Mondays in general are typically good.
It may yet come time to "sell in May", but I don't think tomorrow is the exact day to do it.
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