Société Générale's Albert Edwards Is Perplexed

From Markets Now:

SocGen’s Albert Edwards is perplexed:

I'm perplexed. Until recently (ie the last few days), I had thought that the 35%+ rally in the S&P from its 23 March 2190 low would stall at around 2980 - the 62% Fibonacci Retracement level, as occurred in the previous two .... Hence, I was genuinely surprised to see the S&P climb above the technically important 2980 level, and yesterday power above its 200-day moving average. We are now only 10% from February's all-time high, and with the US unemployment rate heading towards 20%, one might ask: At what point does the stark disconnect between Wall Street and Main Street become a political embarrassment for the Fed? Maybe never.

The rally from the March lows is similar to last year's rally. It is narrowly concentrated on the large cap ‘growth' stocks - aka the FAANGs (Facebook, Apple, Amazon, Netflix and the stock formerly known as Google, but now called Alphabet).

Though if we’re honest he’s not that perplexed:....

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