Money and credit continue to grow to levels never before seen.
Some commentators are suggesting that the Federal Reserve is pumping the breaks on this by showing a shrinking balance sheet.
They are totally missing the mark on this. The Fed has taken other measures that will continue to grow money and credit. Reducing the reserve requirements to zero is one example. The Fed does not directly control money and credit. It can only influence it. The Fed is just about as clueless as you could be during this. They continue to publish papers using models that have no bearing in reality. In the long run this will push asset prices up.
The market appears to be reacting to more COVID-19 bad news. It is hard to get a feel for what is happening since the data is so crummy. Places that show increase cases also show increase testing. As I have stated over and over, doing test like this tell you nothing. Any type of panic selling should be considered a buying opportunity.