The market is shrugging off recent failed peace agreement and blockade news, with the Russell 1000 Growth (RTY) leading the charge higher. The S&P 500 (SPX) and the Nasdaq Composite (NDX) are also seeing gains, with breadth equally split between advancers and decliners. The CBOE Volatility Index (VIX) has fallen back below 20, and crude oil is making its way back towards the $100 level.

In terms of flows and liquidity, overall desk activity is currently a 2 out of 10, with 5% of volume coming from buy-side firms. ETFs are accounting for 30% of trading volume, and top-of-book liquidity has seen a decent improvement. The most shorted stocks are seeing significant gains, with the Software sector (+390bps) leading the way.

In terms of earnings season preparation, Goldman Sachs is providing an EPS playbook for investors, highlighting key themes and debates to watch in the coming quarter. The GS Sentiment indicator has also swung from oversold to overbought, indicating a significant shift in market positioning.

Biotechnology stocks are seeing relative strength today, with several names seeing significant gains following better data in the space. One Liners from Goldman Sachs’ essential notes this weekend include Tony P’s expectation of a volatile trading range for the S&P 500, John Flood’s analysis of flow dynamics, and Rich Privo’s net view that there is still plenty of noise for investors to digest but this is the beginning of the end of the conflict.