Good evening folks, I hope you and your families are all staying healthy.  The S&P 500 (SPX) Futures market opened the Sunday trading session down 2% as Covid-19 and its economic consequences keep ramping higher.  Remember what we said last week, the three main reasons for the expected oversold relief rally are no longer in play, which means we are left with incredibly uncertain fundamentals:

  1. The 17% bounce from Monday’s low to Thursday’s peak removed the historic level of panic that existed as we entered last week
  2. The announcement of the incredible monetary and fiscal stimulus took place last week.  Now it should take time to get the money to those businesses and households that need it.
  3. The pension fund quarter-end rebalancing was largely completed last week.  This refers to pension funds being overly underweight stocks due to the sudden crash and needing to lower bond allocation while buying equities.



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