Stocks are up against big ‘resistance’ and likely need actual economic improvement to overcome it
The New York Stock Exchange (NYSE) is seen in the financial district of lower Manhattan during the outbreak of the coronavirus disease (COVID-19) in New York City, U.S., April 26, 2020.
Jeenah Moon | Reuters
The coronavirus crisis is unprecedented in modern times, the near-global lockdown a wholly new kind of societal shock.
Yet as novel as the experience is in detail, the markets continue to fight old, familiar battles as investors try to handicap an unusually wide range of plausible economic outcomes.
Specifically, the S&P 500‘s powerful rebound rally was thwarted last week right in the zone of important prior peaks; the market continues to struggle with dependence on a handful of dominant, richly priced growth stocks; and equities remain tethered to the credit markets, with bond investors deciding how long the leash.
Last Wednesday, the S&P hustled to a high of …continued .
[Source: CNBC News]