Scissors > Paper – And right now optimism > pessimism. The official kickoff to the summer season has released animal spirits, as equities rip higher from the start. This echoes moves across the globe, with the S&P going above the psychologically important 3k level, which also coincides with the 200dma. This enables us to target the early March “first recovery high” at 3136, about 4.5% from here with 3200 not out of the question – absent any guidance, the trend and charts are your friends (see below). Talk of skyrocketing infections in emerging markets (Chile/Brazil) as well as pockets of waves throughout the US have been nudged aside, worst-case scenarios yet to play out. Instead the focus remains on stimulus, lockdown lenience and vaccines – welcome Novavax to the party!
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