It will retest the highs. Probably. Too many trillions are being pumped in for it to drop. Compared to other assets the effect is minuscule in percentage terms which means that a correction is needed. Looking at the charts only the dollar is down and bonds are still waiting for a proper push. Everything else looks very overbought. The spring will snap back at some point and cut a lot of heads off, but you can't tell when. I guess the whole point of the game is to keep everyone of balance and wait until the last possible moment. In every major market crash the public was heavily involved. Everyone has capitulated now and is expecting the FED to keep pumping into eternity. Probably a good time to take a brake and wait for it to happen.
@Svetul4o, The crash in March was due to a few different things that made it only a "flash crash". For one, there was record amounts of speculation in the form of call buying that, once selling picked up due to the virus, resulted in a massive selloff by MMs to delta hedge their holdings as the spot gamma flipped negative. A ton of stop sells were placed in early March and after the FOMC meeting, that signaled to the offshore banking system that there was still a major dollar shortage so they hiked their collateral rates and forced a firesale of assets to cover their margins. Even off-the run t-notes weren't being accepted as collateral. That's why it was such a complete financial meltdown, global liquidity dried up entirely. It's definitely not over though, that was just a tremor of what's likely just around the corner.
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