The Strength of the Market is: Weak but Strengthening
Additional stimulus legislation and the potential re-opening of the economy has excited financial markets. Last week, The 'Paycheck Protection Program and Health Care Enhancement Act' was passed and signed into law to provided additional emergency relief to Small Businesses, Farms, Public Health and Social Services. And, many states - Alaska, Georgia, South Carolina, Tennessee, Texas and Ohio - have plans to start relaxing social distancing practices, soon beginning to allow various businesses to reopen. The world stock market continues to get closer to healthy levels - now, above both our short-term (21-day) and medium-term (50-day) trends. And, it may not be too long before our long-term (200-day) trend turns positive, as well.
Our 'Strength of the Market' view, since last week, remains: Weak but Strengthening