Just one simple chart to start off the new day:
The yellow tint was the fast, glorious, over-way-too-quick plunge that took place during most of March. This, sadly, was terminated by Powell pledging an infinite backstop to corporate America on March 23rd. His actions compelled the market to turn on a dime.
The recovery, in cyan, was powerful and relatively swift. This isn’t too shocking, because there was very little in the way of overhead supply to contend with. That sharp yellow tint offered very little in the way of resistance.
Now, however, we are back into the enormous multi-year green zone, which has a Himalayan mountain range of overhead supply. I daresay the like-a-hot-knife-through-butter ascent is through.
