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Markets fell sharply around the globe Monday in follow the leader fashion - so much for any decoupling ideas.

With US markets gapping lower at the open, heavy buying almost immediately appeared to rally markets - and did so repeatedly during the day, fighting off any attempts to knock indexes lower.

Investors in the US may well have been influenced by Fed Governor Randall Kozner who stated: "In the months ahead, the Federal Reserve will continue to monitor developments in the financial markets and act as needed to support the effective functioning of these markets and to foster sustainable economic growth and price stability." Some interpreted these remarks to indicate authorities will do what's necessary to foster growth and support financial markets. On the positive side, interest rates get cut and negatively, monetary inflation resumes.



Once again the market leader is tech and investors there are betting on good earnings from Apple and Texas Instruments to continue to stoke bullish sentiment. And, after the bell, it seems that both companies delivered strong reports.




Volume was relatively light given the volatility.



There was a lot of unwinding of profitable positions in other market sectors today ranging from currency to commodity markets. This typically happens when losses are incurred in one market forcing traders to cover them with gains in another.














If Friday was a one day wonder then what was Monday? It's a long week without a lot of economic data but full of earnings reports. AAPL hit the cover off the ball again and they're one of small but important team of tech stocks taking markets higher.

We posted a podcast interview with the Emerging Markets Monitor [London] HERE conducted Friday. Topics that were discussed emphasized the underlying positive overall EM theme, current risks and special emphasis on current conditions in China, Hong Kong and India. Given the heightened interest in these markets I know you'll want to listen.

Have a pleasant evening.

Disclaimer: Among other issues the ETF Digest maintains positions in: SPY, QQQQ, UDN, USO, GLD, EEM, FXI and INP.

Source: Dave Fry's Market Outlook For Tuesday: Can Tech Drive Us Higher?