The Market had a robust bounce over the last few weeks thanks to the FED and optimistic bulls. As reality begins to set in and more economic data is published, the Market is starting to understand the recession is more than real, and the "new normal" involves continued social distancing, red tape, and a lot of jobs lost (and a realization that virtual work is cost effective).
There are clearly individual stocks that have solidified a defensive / stable profile, but is that enough to keep the entire market at its current forward looking value? It will be interesting to see how this plays out. As they say, "you cannot beat the FED", but it looks like a few too many Algo traders pushed value far beyond the actual support provided.
Look around the 2775 level for key resistance. A break past this should confirm a retest of the lows, or whatever artificial floor the FED has provided since March.
This is for educational purposes only and should not be considered trading advice.
There are clearly individual stocks that have solidified a defensive / stable profile, but is that enough to keep the entire market at its current forward looking value? It will be interesting to see how this plays out. As they say, "you cannot beat the FED", but it looks like a few too many Algo traders pushed value far beyond the actual support provided.
Look around the 2775 level for key resistance. A break past this should confirm a retest of the lows, or whatever artificial floor the FED has provided since March.
This is for educational purposes only and should not be considered trading advice.