As bad as the internals and technicals looked, the markets have again been juiced by central banks. Most cannot fathom that we are not dealing with central banks of the past in which they would lower rates by a quarter point. You now have central banks at 0% rates so not much to do there. What are their discussions? How many trillions of money to print! This money printing has staved off bear markets for the past 5 years…and may be doing it again. To repeat, we are not dealing with the norm. TRILLIONS do move markets and they know it. There is no doubt that there will be one day where markets are inflated so much, that regardless of central banks, they have had enough. Maybe we are there…maybe we are not.
We suspect after this recent “V’ shaped move up, we would get some backing and filling. That looks like it started today but we believe more upside could be had. Momentum is momentum. Do keep in mind there remains a clear lack of leadership but as you know, leadership can show up. We continue to be in the midst of earning’s season where we expect a lot of jello to move on the plate. Stay ready!