By Graham Summers, MBA

Shares are rallying right this moment as a result of they imagine:

1) The financial institution disaster is over (it isn’t).

2) The Fed is again to easing (it isn’t).

3) The economic system is robust (it isn’t).

4) The Fed can obtain a “tender touchdown” (it could possibly’t).

The Russell 2000 (IWM) which is extra intently aligned with the economic system and development has figured this out. It’s solely a matter of time earlier than the S&P 500 “will get it.”

In the meantime, regional banks are again on the lows.

Financials often lead the broader market. Possibly this time is totally different?

Or possibly the subsequent leg down is coming and coming quickly.