Crappy finish. Past 3 days may be showing the near-term wall from the recent crash lows rally. Thinking we go into some sort of pull back but don’t think much chance of breaking recent lows. More of a chance that we go range-bound for a bit with past 3 days a high.

BIG PICTURE…REMAINS GROSS AS EVERYTHING TRADES BELOW LONGER-TERM MOVING AVERAGES.

Lastly, be careful of big dividends. Seeing people excited that some names paying double digits. There is usually a reason and already seeing some dividend cuts.

Futures down a few this morning after a good day yesterday. Volume was lighter.

Improvement off of last week’s low. It was last Monday where we thought A LOW was being put in because of a bunch of positive divergences combined with a HUGE DOSE of continued bearish pessimism. But the move was stunning. Then again, after such a drop, you never know.

We would love to see contracting volatility here which enables us to see things better. Relative strength is easier to isolate. Chart patterns tighten up. We suspect or hope we start to get some of that.

This morning’s coronavirus map!

https://gisanddata.maps.arcgis.com/apps/opsdashboard/index.html#/bda7594740fd40299423467b48e9ecf6

 

We now tape radio that airs at 6 pm because of the virus situation. When we taped today, we made sure to mention that the nasdaq/tech/sox were doing the opposite of Monday. On Monday, they led big time. Today, lagging. Markets sold off into the close led by guess what? Those areas. Not sure what that means but we always want “risk” areas leading.

Markets were hit because “the bill” may be stalled. But let’s be clear, a bill will get done soon. Odds favor more upside testing but today’s petering out is of note.

Just lots of stuff off the bottom after basically crashing. And of course, we are going to see a lot more than $6 trillion coming out of these numb skulls so anything possible. If the deal is signed and markets still sell off?