S&P 500: The S&P 500 retests its bear market territory as the Financial Sector got hit

 


The S&P 500 tumbled 4.55% for the week to close at 3,861.59, just above its bear market territory at 3,855. The market meltdown was led by the Financial Sector, down 8.5% for the week, after Silicon Valley Bank (SVB) was shut down by U.S. banking regulators. SVB is a reminder that "things tend to break" when the Fed hikes rates aggressively, per MarketWatch.

Beware that the bears could take the S&P 500 down to retest the trendline support at 3,825 next week. Be cautious though, the market could bounce hard if the Fed acts aggressively to prevent the SVB collapse from spreading out of control.

This note contained herein is not and should not be construed as a recommendation to buy or sell. Click here to view the latest update!


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