Eyes on 6,500
The S&P 500 is still holding up well. Despite the oil price shock and rising inflationary pressures we are still only 7% below ATH. The market is still believing in a shorttterm deescalation with Iran, Trump yesterday posted news in that direction. Wether that is valid and will be successful is not clear.
However, if the S&P falls below 6,500 points, things will get dangerous. For me, that’s the threshold where a bear market becomes more likely than a quick recovery. The next support level is then at the 6,100 points we’ve already discussed. That would be a 14% drop from ATH, still above official bear market territory which starts below -20%.
Keep calm guys, these phases of FUD are normal from time to time. We will get through it at some point. I am holding and waiting for one or another opportunity to arise.
