While the SPX was oversold at its April lows, there was a reason for the selloff. That reason, Trump’s disastrous trade war, is still with us. Yet, the market is back to where it was when the tariffs were announced after nine straight daily gains, the longest winning streak in more than 20 years.
Friday’s rally was especially dubious as it was based, in our opinion, on falsified employment data. We’ll get ISM services data (watch the employment component, which fell from 52.1 in Feb to 46.2 in Mar) and an FOMC meeting and rate decision this week. We’ll soon see whether or not the rally’s longevity is warranted.
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