This is due to BOJ announcing they are doubling the easing to the tune of 7 trillion Yen per month. This will drive the Yen down proportionally to the market going up. This also helps keep USD propped up adding to the short-term appeal of US treasuries for risk-off (so much for the bond bubble popping). This will also likely inflame the global currency war and spur other nations including So. Korea to participate in competitive currency devaluation. This may help Japan sell more exports at the expense of their neighbors. It amazes me that European & US markets see this as a positive. Central bankers the world over have no interest in long-term economic health and just want to create asset bubbles. Tomorrow is looking like a good chance to add to short positions.
It is unlikely that gains tomorrow will hold into the weekend. It's too little too late with transports and small caps already well-established in downward moves and copper breaking down below multi-year resistance. US Treasury yields are showing the bond bubble is not ready to pop and a desired safe haven for the short term. The jobs report on Friday is likely to disappoint given the negative read from ADP which has been closely tracking the BLS figures. Aluminum prices have continued to dive so Alcoa is likely to turn in poor earnings on Monday to kick off the season. This looks like the typical spring rally that overextends and ends with losing all the gains by Summer. Approximate losses for prior spring rallies with peaks in April
2010 - 20% loss by July
2011 - 20% loss by August
2012 - 10% loss by June