Patrik Kovac
Did we entered bear market ? Not exactly but, The $SPX500 on Tuesday closed below its 50-day moving average for the first time since March. It could portend more losses for the index, suggesting that the summertime stock-market selloff isn’t over yet. Yesterday snapped a 96-day streak of closes above the 50-day, the index’s longest since a 102-session streak ended on Sept. 17, 2020. Dow Jones data shows September is historically the worst month for S&P 500 performance dating back to 1928 (data before the index’s creation in 1957 is based on a historical reconstruction of its returns), with stocks falling more than 1.1% on average in September. A sell-off in banking stocks, along with a strong retail sales report that helped stoke fears of continued high interest rates, dragged the $DJ30 down by 1%, or 361 points, ending the index’s three-session winning streak amid a broader stock selloff. The $NSDQ100 has fallen over 2% each of the past two weeks — the first time it's posted losses for two weeks in a row since December 2022. The tech-heavy index has jumped over 30% year-to-date, but it has shed 5% in August alone, with signs of inflationary stickiness and a sell-off in semiconductor stocks. Conclusion: Hold on to some cash for these 2-3 months as we might see more losses. Which might later oppose some great opportunities. ▶️CONSIDER FOLLOWING ME IF YOU ARE INTERRESTED IN THIS KIND OF INFORMATION SUM UP. Source: MarketWatch, Investopedia, MarketInsider
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