by Rick Ackerman
Stocks have arguably never been more vulnerable than they are now. We need only ponder Tesla’s chart to understand how Wednesday’s highs may have marked a very important top. I’d expected the broad averages to hang tough as the week drew to a close, but their modest bounce on Thursday provided barely enough loft for a modest distribution. DaBoyz will pull out all the stops to keep up appearances on Friday, but however successful the effort, the market will need to fall far enough to test late June’s lows before it is even capable of a sustained rally, never mind psychotic leap. Friday’s price action will tell us whether bears have grown comfortable with holding short positions over the weekend. My gut feeling is that increasingly grim news concerning the pandemic is about to overtake an absurdly optimistic vaccine story as the focus of investors’ attention. They have gotten so very much so wrong already that it has only been a matter of time before the irresistible force of Fed funny money meets the immovable object of economic reality.