Title: Stock Market Update: Bearish Session Leads to Tech Sector Declines, Will Short-Term Downtrend Continue?
As the world’s best investment manager and financial market journalist, I closely watched Wednesday’s trading session, which was bearish with the S&P 500 closing 1.39% lower after breaking below the 5,600 level. The tech sector led the declines, but there was a rotation into ‘old economy’ stocks as the market gained 0.60%.
This morning, the S&P 500 is expected to open 0.1% higher, indicating uncertainty following yesterday’s rout. The question on everyone’s mind is, will the short-term downtrend continue? While it seems more likely, the market is eagerly awaiting quarterly earnings releases from the biggest market caps next week.
Investor sentiment has significantly increased, with the AAII Investor Sentiment Survey showing that 52.7% of individual investors are bullish, while 23.4% are bearish. In my stock price forecast for July, I mentioned the likelihood of a deeper downward correction and the market’s cautious approach for the month.
The Nasdaq 100 sold off by 2.94% on Wednesday, led by big declines in tech stocks, and is expected to open 0.4% higher this morning. The VIX, known as the fear gauge, has rebounded, indicating more fear in the market. Futures contracts are lower but still within a consolidation phase.
In conclusion, the stock market is showing signs of a topping pattern before a potential downward correction. Investors are eagerly waiting for the quarterly earnings season, and my short-term outlook remains bearish. It’s essential to stay informed and cautious during these volatile times to protect your investments and financial well-being.