U.S. stocks headed for a higher open on Monday as solid results from major European banks and expectations of a sales rebound for Ford Motor Co reinforced hopes that the recession is moderating.

U.S. stocks and oil prices turned south on Friday as investors questioned recent rallies in the face of economic data that still shows a mixed picture of when economies will rise from a deep global recession.

The market has rallied eight times since it peaked last October. If Friday was the beginning of another rally, it would mark the ninth time.

It’s over. The bear-market rally of the past two months ended last week.

The canary is cautious. Longtime Growth Stock Wire readers know I watch the short-term action in Merrill Lynch shares to predict the coming strength or weakness in the overall market. MER is my proverbial canary in the coalmine.