Mike Santoli market notes: Market finds support, credit spreads narrow, routine pullback?

  • Snappy little buy of the dip this morning, within the context of what remains so far a contained retreat after a galloping rally. Last week's shakeout was as jolting as it was necessary, flushed a bit of complacency and relieved some technical extremes. Still within "routine pullback territory" as the news flow grows a bit more staticky.
  • Persistent national infection rates with hot spots in hot states is open to some interpretation. But after weeks in which Covid-based bearish calls could not get traction, the data have garnered more attention just as stock prices were ready for an excuse to take a break. With this and "fiscal cliff" of expiring fiscal support July 31 and the election background noise building, it together presents a test of investor resilience and thirst to get into the market on the first break.