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The dip in oil price and Treasury yields helped to turn the stock market, with the Nasdaq leading the way.
The index is down 33% this year and the bear market probably won’t end after a 75 bps Fed hike and with Kashkari hinting that another one is coming in July. But bear market rallies can be intense and they often start once everyone is bearish.
There was a distinct smell of puke in yesterday’s price action. The widows-and-orphans stocks were getting tossed out along with everything else as even the safest stocks dumped. That kind of capitulation tends to clear out all the weak hands, leaving only buyers. And those buyers have been nibbling away today.
I tend to thing we will see more of that after the long weekend but the last time the US had a three day weekend was Memorial Day and that was followed by two days of selling.
