Market Rally

U.S. equity markets, as measured by the Nasdaq Composite, the S&P 500, and the Dow Jones Industrial Average, rocketed off their March coronavirus crisis lows and are headed higher.

The Nasdaq Composite’s already been making successive higher all-time highs and is poised to break out north of 11,000. The S&P 500’s only 87 points or 2.56% from its all-time highs, as of Tuesday’s close. And the venerable Dow, bringing up the rear, is 9.26% from its February 12, 2020 all-time highs, after plunging 11,354.92 points or 38.4% at its March 23, 2020 lows.

Stocks have bounced back, even the zombies parading around as healthy companies.

The markets have been roaring higher based on fulfilling the economic, and now market, postulate “more is always better sooner.”

But there are caveats to “more,” to “better,” to “sooner,” and especially to “always.”

I’ll touch on those later in the article – and I’ll have a special request for you as well…

In the meantime, here’s what to look out for and what’s on the other side of what’s been driving equity benchmarks higher and what could happen to them if the consequences of more, better, and sooner aren’t always and forever.

The stock market’s risen like a bat out of hell since bottoming out on March 23, 2020.

Remarkably, the institutional benchmark S&P 500 is up 43% after being hit by the coronavirus pandemic.

And while there’s still no vaccine for Covid-19, as the country sees dangerous spikes across 32 states, with mayors and governors again calling for businesses to shut down, as the additional $600 per week unemployed workers were getting runs out, the stock market looks clearly poised to go higher.

Here’s where we’re at, what hurdles are left to jump over, and why we’re headed higher.