Mike Santoli’s market notes: Textbook turnaround, hedge funds reload, billionaire warnings

A pedestrian outside the New York Stock Exchange in New York, July 29, 2020.
Wang Ying | Xinhua News Agency | Getty Images

This is the daily notebook of Mike Santoli, CNBC's senior markets commentator, with ideas about trends, stocks and market statistics.

  • We have textbook Turnaround Tuesday dynamics at work today, even though it's Wednesday. Late-week selloff with follow-through to the downside to start the next week is a prime setup for a bounce. Today's rebound is a bit stronger than a straight, mechanical lift – S&P recouping more than a quarter of the total loss, up more than 3% from the overnight futures low.
  • Dip buyers probably emboldened by the lack of macro stress or economic hiccup associated with this sell-off. Weekly tracking data all look fine, job openings better than expected today, transports and consumer cyclicals outperformed in the decline, no buying panic in Treasuries and credit spreads not really acting up.