The HYG ETF "finally pulled above its 200-day moving average. That is the key resistance for the high yield market, for this ETF, and it's also getting just above the top end of the sideways range it has been in for two months now, above $85," he said.
John Petrides, portfolio manager at Tocqueville Asset Management, said a high degree of uncertainty keeps the S&P 500 stuck in stasis. "The market is at a total crossroads ... and I wouldn't be surprised if the S&P 500 is stuck rangebound between 3,000 and 3,300 over the next couple of months," Petrides said during the same segment. "The problem investors are wrestling with today is that you could put a high probability on top of the bull case and the bear case."
On the bull side, Petrides said there could be a case made for a 30% move higher for stocks. The bear case, though, could be valid if Covid-19 cases continue to spike and states have to roll back reopenings, he said. "There are cases that we have a repeat of March and April. I'm hoping that doesn't happen, but it's not out of the question," said Petrides. "By and large, I think stocks can be rangebound, probably or possibly, until the election."
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