The market continues to work through this consolidation period we highlighted in A natural place to rest. One of the reasons is an increase in the cases of Covid-19 in states like Florida that have reopened. My son told me last night about a friend he used to work with that was staying in Florida over the past two months while waiting out the pandemic. When Florida reopened he went out with friends, and got the coronavirus. Although he is feeling better after a few days, he still can’t smell or taste anything. The point is the economic reopening is likely going to be pretty choppy as we begin to get a sense of how the Covid-19 cases are progressing. The same is likely true for the financial markets as they work out of the intermediate-term overbought condition created by the ramp higher off the March low and May trading range breakout.
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