The market has traded in a narrow range but has revealed several narratives that inform investors.

1. Investors do not want a full-scale battle between the Unites States and China, although most Americans want more manufacturing and security on these shores.  The timing for another serious battle against the Covid-19 pandemic is worrisome.
2. Investors think China is bluffing but have to respect the saber rattling.
3. April might have been the harshest month, but it could also be the nadir, and that’s great news.
4. Buy on dip crowd is around, although not forcing the issue into the weekend.
5. Sellers are also exhausted.

April 2020 Retail Sales were worse than the analyst thought, but the Internet saw sales surge 22% from a year ago.  Grocery sales slipped after a mindboggling 25% gain in March.

Message of Market

Investors are selling off two safe havens in a major way. Utilities are down almost three percent and Real Estate is down two percent.

I’m surprised Technology isn’t lower with so many of the bellwether names in the scope of a potential China retaliation.

Have a great weekend.  Stay safe and be well.