The post-COVID era has not arrived yet, and that cuts to the chase of what's bothering markets (periodically, with our rebounds outlined) and prospects for the economy. The optimistic hope is to keep everything open on a presumed basis, because enough are vaccinated to negate worrying about restrictions.

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Unfortunately that's both unrealistic and denies what's happening, as genuine 'freedom from COVID fear' is interrupted in some states by overly protective or just cautious governance, or in states with callous disregard of responsible or proactive vaccination programs.

On-top of that you've got significant breakthrough levels, of already protected vaccine recipients, plus some areas trying to get everyone to wear masks yet again. That may or may not help, but it's a psychological impairment for sure.

Executive Summary:

• S&P and NASDAQ rebounds extended above Monday's breakaway gap from Friday's low as expected, with S&P having held above 4200.

• Notably a little short-term declining pattern was taken-out (I thought it would be), and that has and will scramble shorts a bit more.

• It's likely that another phase of shakeout looms out there, but not yet.

• In fact the irony is that 3% give-or-take shakeouts like we had, occur fairly frequently, but with this market structure they don't gain legs.

• We had forewarned there would be a mid-July shakeout but that it would not plunge into an abyss, but just be a 'whoosh' (noting oversold oscillator readings and so on).

• The upside here ought to consolidate a bit, even let sellers try something to reverse the rebound, but I don't think we're at that point, providing Oil an Oil stocks continue their rebound.

• Nobody seems to focus on Oil, it broke and S&P dropped, it rallies just as suspected for today, and the S&P goes up, Oil should be stable for now (OIL).

• Energy demand (economic outlook) doesn't shift that fast, so this trading frenzy is just that and not reflecting a clear view of economic prospects.

• It's not inconceivable that we get 'record highs' again for the big Index, of course it's a bit ludicrous, but that's the nature of this market, specifically as relates to hedge and other managers 'cowering' in overpriced stocks.

• That same handful of issues dominates the move, but finally signs of life in a few small-caps, which is either a temporary sign or more significant.

• It's hard to define this since the COVID-related dynamics are still shifting, and that also makes 'corporate guidance' for late this year and into 2022 very tricky and unreliable.

• That's especially so when it comes to 'travel' (airlines, cruising, hotels, etc.) and while some (myself included) plan 2022 holidays, there's a tendency to either have travel insurance (overpriced and often unreliable) or recant on plans, especially international.

• Speaking of, COVID cases continue to rise in Tokyo, and more than 80 at the Olympics tested positive, with new cases in the USA rising a lot (the myth that positivity rates didn't mean much has been busted by people showing-up at ER's, and that's not merely related to testing jitters.

Sorrento Therapeutics updates and reflections:

• Speaking of tests, if you extrapolate the revenue from Mexican sales just alone for Sorrento's (SRNE) Covi-Stix, the numbers are boggling, if they do sell of course, as the idea that testing is passe is obviously shattered by reality.

• Speaking of Sorrento, they announced another Phase 2 oncology trial as well as discussing good results from the first Brits getting the nose drops.

• Sorrento's partner Escugen Biotec. and subsidiary Levena Bio, received clearance for clinical trials with anti-TROP-2 (an antibody drug conjugate ESG-401) for multiple solid tumors.

• Sorrento earlier in the week noted COVID-19 patients have been dosed in Phase 2 efficacy trial of COVI-DROPS, apparently in the U.S. and U.K..

• Sorrento shares nudged higher, however it's really hard to say how much is progress on the rolling-out of their trials & tests, or shorts covering just ahead of a PSS Arbitration Hearing at LA Superior Court in the morning.

• Sorrento is the plaintiff and already won, but it's anyone's guess as to the award statement or amount, if even forthcoming without a continuance.

• If Sorrento prevails there could be a thrust in share price followed by a 'sell the news' pullback, but if the hearing is 'continued', I'd suspect very short-term alternating moves might continue, but gradually working higher on a perception of wider marketing of 'tests' (even aside treatment trials).

In-sum:

More upside for the market, at least temporarily. Record highs for the S&P might be in traders minds, just to make everyone crazed. I'm currently looking into ties between LightPath (LPTH) and Luminar (LAZR).

The stock market, especially the big Indexes, continue adhering to outlined prospects, generally the flailing extension early this month, the shakeout that was just that (and not a calamity), and projected rebound we're in presently.