‘Selling fatigue?’ Stocks move into the green

The president yesterday abandoning his mid-April hope for getting the economy back up and running had U.S. stock index futures sharply lower in early action.

That’s been reversed in total less than an hour before the open, with S&P and Nasdaq 100 futures up more than 1%, and DJIA up 0.8%.

UBS calls it “selling fatigue,” noting investors are no longer wildly selling every bit of bad news. However, that doesn’t mean the bottom is in, argues the team.

On the fundamental side, they note there’s still plenty of bad news to come in regards to the virus, and on the sentiment side, they’re not yet seeing capitulation in core positions in growth stocks.

https://seekingalpha.com/news/3556258-selling-fatigue-stocks-move-green