An ugly start to the week on incremental downgrade news was partially offset by week end on economic beats for a net S&P 500 (SPY) loss of -1.6%, or -10.3% over the last four weeks. Although we may be short-term overbought on this minor rebound, on the right news flow with the VIX remaining nearly +22% stretched above its intermediate-term moving average, I expect that there should be a bit more upside ahead. Along the same lines, it has been a phenomenal run for bond holders on this turmoil, and I am becoming worried for those with all-in long exposure in that class.
Source: Mrkt_Commentary subscription service; prior weekly posts.
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