The historic April jobs report provides clues on what to expect from here.
We have little choice but to respect the price action above all else.
Momentum traders are unusually aggressive and 'Fear of Missing Out' is running rampant, but how long can this action persist?
Trading volume is increasing with strong internals, but nonfarm payrolls -- reporting on Friday -- are expected to be abysmal.
The pockets of extremely strong momentum as 20 million people lose their jobs creates great confusion for those that are trying to apply logic to the market.
Unemployment and buying news put a damper on the action, but it is Amazon and Apple earnings that will determine short-term sentiment.
Maybe it ends up being a small price to pay to avoid a depression.
No, I don't believe we'll suddenly bounce back to where we were at January's highs, but here's what I believe will go right.
With a sharp advance off the recent lows perhaps the stock market sees less bad down the road - for now.
The problem for index fund owners is they own all three buckets and there are a lot more companies in the third bucket than in the first two.