Just three weeks ago, we published the report The Fed Can’t Save This One: Why Bonds May Break The Stock Market. Here we asserted that the next move for the market was likely a bounce.
“While we see the potential for another leg lower in this bear market, we should see a sizable bounce first.”
Since the April 7th low, the S&P 500 is currently +16% higher, and in our target zone of 5600 – 6050. Now that we have reached our target zone for this bounce, we are shifting back into a defensive posture, using this bounce to raise more cash and layer back into our hedges.
