And that is to run to the shelter of tech stocks again
Nasdaq futures are racing higher now after earlier losses and leaving behind other less heavy tech indices such as those in Europe and Dow futures as well. S&P 500 futures are somewhat in between that, trimming losses to 0.1%.
The feeling in the market right now is that there hasn't been any solid follow through momentum following the brief and sudden euphoria on Monday.
As such, the rotation back into tech can be somewhat construed as a "reversal" of optimistic flows but it also hints that when the market is needing to figure things out, it reverts back to what is most comfortable - a reflection of human nature.
It was the same case in trading yesterday, with it being a partial holiday in the US where the bond market was closed and investors were left to their own devices.
That saw the Nasdaq rally 2% with the Dow ending the day closer to unchanged levels.
After the push higher on Monday, investors now have to debate whether or not the top is in for the year in equities. Pretty much all the good news has been baked in and what's left is investor appetite with price levels not being not that far off fresh all-time highs.
Is there enough greed for another push higher? Or is the market taking a bit of a breather to try and figure that out? Or is there room for a deeper correction with all the optimism already flowing through and the year-end approaching?
Either way, the pop on Monday does at least signal plenty of confidence of what is to come over the next twelve months as long as vaccine developments aren't derailed.
And that is equities have a lot to look forward to in terms of gains, provided the virus does not overwhelm the global economy as it did back in March to April this year that is.
