META - SP500: A Deeper Drawdown Delayed For Now

2024-05-07 00:13:26 ET

Summary

• The recent selloff in S&P500 stopped at a 5% dip.
• A possible bounce higher is in hopes of a soft-landing (again).
• However, this possible bounce will be crushed again by either recessionary data, or higher inflation, or possibly both.

For now, it's a 5% dip

I warned on April 19th that

The S&P 500 faces a dangerous situation with three major events (a hawkish turn by the Fed, escalating geopolitical tensions, and upcoming earnings reports from mega-cap tech firms) colliding with bubble-like valuations.

For further details see: