Bloomberg reports that according to Credit Suisse Group AG, investors are using the stock rally to reset hedges rather than chase upside, signaling little conviction in the rebound.

The S&P 500 Index is up 17% from its March 23 close, after gaining in four of the last five days. But it's been a turbulent time for stocks -- and indeed, all asset classes -- as market gurus and economists struggle to assess the impact of the global coronavirus pandemic. The Cboe Volatility Index, or VIX, ended at 57.08 on Monday and hasn't closed below 40 since March 5. Compare that with its lifetime average of about 19.2.

But it's skew, a measure of how expensive bearish options are compared with bullish ones, that has the attention of Credit Suisse equity-derivatives strategist Mandy Xu.

"Investor sentiment remains extremely cautious as can be seen in equity-skew measures re-steepening significantly," Xu wrote in a note that declared there's "no faith in this rally." "In the options market, investors have taken advantage of the bounce by resetting hedges, rather than adding to longs."