Just about all the stock market indices that I reviewed have the same look: A sharp decline, and now the first sizable rally off a crash-like low.
We would expect a retest at some point in the coming days/weeks, which will provide a more sustainable advance after the dust settles and a low is confirmed.
The S&P 500 Index, Nasdaq Composite, Russell 2000 and Dow Utilities held at their MOB target bands and have lifted nicely.
We don’t think we will have “V” bottoms across the board, so our expectation is for a rally and then a retest of the recent lows in all markets.
In many cases, such as for the Dow Transports, the index held at or above the 2016 low.
We continue to watch U.S. equities relative to Europe. This continues to show that the U.S. is the place to be. Below are weekly and daily charts of the S&P 500 Index.
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