The more positive risk mood now is to do with a retreat in bond yields today but it really feels like just another day in the office for European equities this year. As for US equities, it has been a bit of a struggle and even yesterday's turnaround is hardly convincing of a major switch up in sentiment. In fact, it may even be more of a technical one:
The S&P 500 index caught a bounce off its 200-day moving average (blue line) with the 38.2 Fib retracement level of the swing higher from October also holding at 3,926 - at least for now.
US futures are slightly higher now but it is still early in the day. The ISM services index later could end up being a key event that either vindicates the current mood or breaks it apart. As such, even with equities holding some light optimism at the moment, I would say that it is not without a sense of apprehension and nerves as well.
In short, sentiment remains fragile for US equities even if we are seeing buyers look to build on yesterday's advance. We'll have to take stock of the market mood again after the US ISM services index later today.
