Even with over 3.5 Million confirmed cases of COVID-19 and counting, the potential of the economy reopening, as well as new antiviral treatment has led to one of the best months in stock market history. Although, ongoing volatility should be expected - 1.) new tensions arising between the U.S. and China, 2.) unknowns about vaccines, 3.) additional announcements of lockdowns being lifted and 4.) investors losing faith in certain industries (Berkshire Hathaway sold all airline stocks) are just a few examples of items to keep an eye on. The U.S. stock market is still about 5% below a healthy long-term price trend (200-day), with the International stock market being roughly 10% below it's trend. Until these markets can break above their long-term trend averages, signs of weakness may continue to linger.
Our 'Strength of the Market' view, since last week, remains: Weak but Strengthening