S&P 500: Bears are doubling down

 


The bears took the S&P 500 down 1.22% on Friday to retest its 50-day EMA on concerns over weak demand for semiconductor chips, which could spill over to consumer demand. Be aware that Friday's selloff could be fake as the VIX continues to trend down. The spread between the 2-year treasury yield and its 600-day EMA is positive at 1.29%, meaning any U.S. recession fear could also be fake. In our view, the index could bounce off from here or pull back further to test its trendline resistances at 4,410/4,400.

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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