Today’s market decline is bringing about fear of a more dramatic decline like what happened in March. As you know, we have expected a multi-week consolidation that began June 5th after the S&P 500 (SPX) exceeded our near-term target of 3150. At that point we highlighted there should be times where the market feels like it is going to just keep ramping and times where it might feel like it is collapsing – and sometimes this might even happen on the same day!
As highlighted in recent notes like Putting data behind famous quote, we are looking to add risk during periods of weakness toward SPX 3000 in the economic reopening theme because there are basically three differences between now and what led to the decline from Mid-March to the March 23rd low:
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