The nation was struggling to get on its feet and fight back against Covid-19 in the best way America knows, to embrace the struggle and move forward, and then came the weekend. Protests turned into riots in large part, as the rage of those expressing deep frustration and pain was on full display, and in some instances, manipulated into something much uglier.
Emotional wounds that have never healed erupted once again. The looting and the assaults will leave new economic and emotional scares. The nation is at another crossroads when it comes to race and class. I think what comes out of this will make the nation better, but it will not be easy.
Maybe that is reflected in the stock market this morning, which initially saw Dow futures off 350 points, but has since chipped away to what could be an unchanged start to the session. Meanwhile, there are more positive stories on Covid-19, including a report out of Italy of a much weaker follow on strain.
Portfolio Approach
Technical View
As we await the S&P 500 to clear 3,100 the Dow Jones Industrial Average has cleared its key resistance, which might become support. There is an argument for a straight shot to 27,000 before the next major hiccup.
Today’s Session
We are watching closely for the tone of the market. Last week, trading began very cautiously with huge rotation out of growth. That all changed by Friday, but once again, growth is weakest coming into the session.
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