Todays rally was largely accredited to the suggestion by the US President that there was a “A light at the end of the tunnel” due to encouraging news from NY State. That disregards the fact that hot spots during a pandemic shift. While we all hope and pray for NY, the fact is that seven States have not attempted a pandemic response and several others are playing lip service. So, lacking national leadership, the “Light” that the President sees is probably an inbound train.
COVID-19 is a terrible disease that has forced the world to hunker down in a way that undermines all economic activity and is creating a credit crisis that is an existential threat to the world economy. The rally today is to be ignored for now- the Fundamentals of the economy are so bad (https://www.marketwatch.com/story/investors-should-prepare-for-a-coronavirus-induced-vicious-spiral-more-than-twice-as-bad-as-the-financial-crisis-says-jp-morgan-2020-04-06?mod=home-page ) that hope is not an investment option. We’ve seen a strong technical bounce! But without further elaboration I believe any reader can imagine the underlying Fundamental problem of a virtual total shut down of 70% of the economy.
That said- lets look at the chart.