The S&P 500 (SPX) Futures are up big this morning on optimism (1) there is a drug from Gilead that can cure the Covid-19 virus, and (2) President Trump’s reopening plan can kickstart economic activity at some point. Optimism on these fronts is overwhelming the horrible economic data in China, the worsening Virus data out of Europe, and most Governors extending the shelter-in-place mandates until mid-May. Again, the epic battle between monetary and fiscal stimulus on one side is still seemingly overwhelming the economic and EPS data on the other. So what defines whether a rally is tactical or a fundamentally based move due to better economic and EPS expectations? It is usually defined by the leadership off the low.
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