Week 3 of Mercury Retrograde: Much Ado About Nothing

For all the roller coaster ride, the week ended as a sizeable up-week for the stock market indices. After last week's potentially very bearish reversal pattern (hammer), I personally gave up on this week as a down-week.

The market turned out that it didn't know where it wanted to go, after much running up and down. So today all 3 major indices ended just about where they had started at the beginning of Mercury Retrograde, as you can see in the table below.

This week's action was in the bond market, but here again the action was much ado about nothing. Yields on 10-year note and 30-year note skyrocketed, then they both came back down to where they started the week.

Everyone is scratching the head: "What keeps the market up?" as it is hard to find many fundamental reasons why the stock market should go up (except for "green shoots" people). An answer may be at Goldman Sachs quant desk, as frequently reported here.

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