Markets are not the 'sum of all wisdom' - even as pundits proclaim that. It is also the case that there is no intervention by a 'Plunge Protection Team', in efforts to sustain the upside, though that too has been asserted by some.

As a matter of fact, there's an argument that the Fed 'needs' the economy to be relatively soft; lest things really get cranking and interest rates go up to a 'real' post-emergency level. That would balloon debt-service incredibly and of course reveal the true extent of the Nation's encumbered debt, besides of course increasing CPI-based entitlement payments and so on.

There have been 'central bank' flows from abroad helping sustain markets; but that too is not broad. Generally that reflects flight-safety moves with their concentration into the most-liquid most-active major (FANG type) stocks. A lot of them are having trouble holding-together at these levels, much less of course advancing. This remains a shaky distributive market under-cover of a fairly stable-to-strong S&P and Senior Index.

Even Dow Transports are rebounding, despite news that should be obvious suggesting slowing in Summer-bookings that already looked dubious, given the increasing reticence for travel, globally. At the same time you hear about better numbers for 'theme parks' in Florida; a prospect that has some merit, but because of odd reasons. While tourists in some ways are reduced from Latin America (poor exchange rate and their own economic woes) or maybe Canada (exchange rate favors us traveling North; not the inverse; part of a struggling upper-end retail environment in New York incidentally); those not fearful of flying from the UK, will again find an advantage given the Pound's rise to nearly 1.30 again; which gives British tourists a cheaper vacation with family to Disney, or Universal's new water park opening this week, than this time last year.

But also American families, increasingly are prone toward venues perceived as 'more secure'. Manchester will reinforce that tendency. At the same time theme parks do proclaim adequate security (Disneyworld has wisely moved inspections to the parking area, before trams to 'Main Gate'), a contributing factor to the strong cruise-line demand has been affordability (better than a theme park combined with lodging and meals for a family that is on any kind of budget), and a cruise ship's perceived security 'cocoon'. 

For the economy there's also the myth of better home buying or remodeling; 'as if' the consumer was not anemic with respect to discretionary spending. In reality, while forces of weakness clearly dominate, that's been sufficiently obvious, so that every time the market drops, it snaps back fairly quickly.

And Housing itself plunging, gets dismissed to 'low inventory'. But the reality is starter homes aren't affordable in the areas where high-paying jobs are truly plentiful (technology); and incomes have not risen with this so-called recovery. Sales off significantly blamed on 'inventory' is also symptomatic with a peaking (or post-peak) major market condition; which is part of why many companies are locating new facilities in medium-size markets away from the major cities; where taxes and wages of course would have to be impossibly high to entire employees. 

Essentially a lot of hedgers and funds have built a bit of liquidity by selling or even shorting a bit; hence you get fuel for the rebounds, but not meaningful upward extensions; because there are little-to-no investment grade buyers.

Where does this end? With significant risk still present. And a market that's back within-the-trading range they managed to defend late last week. More than that has not occurred; and may not. Next week will be a shortened by Memorial Day of course; and you may have defensive action late this week ahead of that. However, it probably won't be dramatically decisive; but any penetration of last week's lows would likely initiate just such a prolapse.