Stocks: filling the gap or selling the news?

The market is oversold. The US government has gone wild with stimulus (irresponsible monetary policy + bold fiscal commitments).

While the news has just been confirmed, on the weekly there seems to be an upward momentum to fill the gap (as marked).

In the mid-term, however, the US economy will take a larger hit. While the stock market could remain detached, panic selling is likely.

The context of any market panic will be:

• near zero interest rate
  
• trillions injected already
  

which means that the remaining moves are limited.

I wrote an article on the economic & social impacts of the pandemic: drjlt.com/post/137/the-death-of-a-paradigm-the-human-economic-and-long-term-social-costs-of-coronavirus