SPY - SPY: The Correction May Be Massive

2024-04-05 10:14:03 ET

Summary

• I believe that while SPDR® S&P 500 ETF Trust is a good long-term investment, the growing discrepancy between real rates and the upward trend of the SPY ETF is a huge threat.
• I see 2 possible scenarios for how things should develop, whereby I tend towards the scenario of a possible market correction, which in my opinion should be massive.
• The next logical technical level at which SPY should be attractive to buy again is 11-12% below today’s level, in my opinion.
• This is not an attempt to time the market as I'm merely sharing my hunch, without in any way calling for shorting the SPY. Hence my "Neutral" rating.

At some point in my coverage of the SPDR® S&P 500 ETF Trust ( SPY , SP500 ), I stopped trying to time the market. The plethora of negative macro data and potential consequences I reported on in my bearish articles didn’t pan out in the end, and I decided to provide food for thought for my subscribers or readers who happened to come across my posts. That's why my today's article is rated "Neutral," despite the seemingly bearish title....

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