Last week was a reminder that investors are still worried about the uncertainty of COVID-19, its spread and its ongoing effects on the economy. On Thursday, stock markets around the world were down more than 5%, before slightly recovering some of those losses to end the week - a potential sign that stock markets may have gained too much, too fast. Even with the sell-off, U.S. stocks are still showing long-term strength, being above its long-term trending price-average of 200-days. This week, financial markets will be closely watching Tuesday's retail sales numbers and Thursday's employment numbers, as both of these data points should give investors a better idea of how strong or weak the U.S. economy is right now.
Our 'Strength of the Market' view, since last week, remains: Strong