45 days ago • Posted by Paul de La Baume

Markets stage a comeback

Markets staged a comeback last night with the Dow Jones Industrial Average gaining 1.87%. Futures point to an additional 0.8% gain. Markets rebounded after briefly touching technical support levels at ~34,000 and were clearly oversold from a relative strength perspective (RSI). Positive news of the Omicron also acted favorably, which led to a large rebound from stocks with important exposure to reopening. The Omicron variant is widely seen as a headwind to the recovery, but not derailing it. It caught investors off-guard, causing a rapid unwinding of positions last week, during a typically favorable month of the year.