It looks like a pretty weak opening following a relief rally that still left the S&P 500 (SPX) with the worst quarterly performance since 2008 and the worst Q1 in our nation’s history at down 20%.  Remember, that includes a massive relief rally of roughly 17% as of Monday’s close.  As we highlighted Sunday, we thought the relief rally had run its course because the three main reasons for the sharp bounce were in the rear view mirror:

  1. The market was no longer at such a historic extreme near-term oversold condition
  2. The Fed and DC already announced their stimulus measures
  3. The pension fund quarterly rebalancing at the end of the quarter out of bonds that were up too much and out of equities that were down too much had run its course as the quarter ended.



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