Market sentiment has reversed, now biased to "Downside"
Last qtr anything the market spit out was being considered as not as bad as expected and stocks would rally on all data good & bad. Today we get better than expected ISM numbers and market still falls?
Why? Because the sentiment has changed towards being biased to the downside. In other words the news was not as good as expected because stocks have already priced in a perfect V recovery, with that being said anything resembling a shaky recovery or dissappointing forecast are quickly followed by selling pressure to the downside and little buying pressure.
We need to get to Sept-Oct in my opinion before a reversal in sentiment back to bullish occurs again.
Until then we have to tread water & not make too big a bet going long, if we do we could easily drown before we see Sept-Oct.