5.15.20 A Look at Recent Weakness
As we discussed in earlier this week in Markets Due for a Pause, there were multiple technical reasons to believe that US equities were due for some sort a pullback following a more than 30% rally from the March 23 lows. Technical resistance near the 2935 level for the S&P 500 Index, declining participation, and seasonal headwinds all suggested a near-term downward bias.
On Tuesday and Wednesday, the S&P 500 pulled back more than 3.5%, and closed below its 20-day moving average for the first time since April 3. So where do we go from here?
We would first state that our base case is not for a full retest of th... Read more