Reports of a second wave of Covid-19 in Germany and South Korea led to early selling. However, there has not be any true selling conviction or fear in today’s session. While all the major indices began the day in the red, the Nasdaq turned positive early on. The S&P 500 turned green while Governor Cuomo of New York was speaking and said that on May 15 certain low risk recreational activities as well as businesses such as gardening and landscaping, construction and manufacturing can begin to reopen in certain regions.  

FAANG names are all trading higher and big names in Technology also helped the S&P 500 reverse upward. Healthcare and Technology are the two best performing sectors while Materials lag. 

While decliners are outpacing advancers, breadth is positive as are the new 52-week highs.

Market at Crossroads

Last week, I pointed out the NASDAQ Composite was on the verge of going positive for 2020. It happened, and other major equity indices also continue to claw back losses that rewrote the record books.

There is enough momentum for the S&P 500 to recover this summer, which would not be shocking by historic standards. Bear market declines of 34% or less have seen rapid recoveries.