U.S. stock market pullback came on view rally overdone

NEW YORK (MarketWatch) — U.S. stocks on Tuesday offered a modest rebound after taking their strongest daily punch in six weeks, with some analysts chalking up the recent downturn in equities to overbought conditions versus a change in fundamentals.

“Prior to Monday’s trading session stocks were up nearly 50% from the lows in March and higher by over 14% in the past five weeks. With these types of gains investors had begun to wonder if the stock market moved too far too fast and whether the improved economic reports justified the current trading level,” said Robert Pavlik, chief market strategist, Banyan Partners LLC.

What “improved economic reports”? GDP is still contracting and jobs are still being destroyed.