Bank of America, Goldman Sachs, and the big bears shouted together: the US stock market has not bottomed

time:2022-12-09 07:06:04source:chakarski.com author:Technology stocks
Bank of America, Goldman Sachs, and the big bears shouted together: the US stock market has not bottomed

The rebound of U.S. stocks on Wednesday, September 7 means that the recent decline in U.S. stocks has stopped? In Wall Street's view, U.S. stocks still have to fall. Bank of America strategist Stephen Suttmeier analyzed it from a technical level. He sees the S&P 500 testing the pivotal point of 3,900, which is the confluence of the August head-and-shoulders descending count, the 61.8% retracement of the June-August rally, and the July breakout and retest zone. place. He believes that the current 3,900 points may be subject to bearish pressure, and the S&P 500 index will not have support until it falls to the low of 3,810 points set in late May. Lows from late June to mid-July may provide the next support level between 3738-3712. However, if the index falls below the 61.8% retracement level of the June-August rally, or 3899.84, it means the index is at risk of a retracement to the year's low of 3636. He warned investors that it is not yet the time to buy U.S. stocks, and if they want to buy, they need to wait for more buy signals to appear. Goldman Sachs strategist Peter Oppenheimer analyzed the current bear market in detail in a report on Tuesday. Bear markets can be divided into three categories: structural, cyclical and event-driven, the report said. Regardless of the type of bear market, the initial transition from bear to bull tends to be strong and driven by valuation expansion. But rallies in bear markets are common, making it difficult to spot these shifts in real time. He believes that low valuations are a necessary but not sufficient condition for market recovery. Factors such as nearing the worst point of the economic cycle, peaking inflation and interest rates, and negative positions are also key factors in the real recovery of the market. In the face of the current US stock market, the strategist concluded that the current market has not yet met the conditions for recovery, which indicates that the market will be further volatile before the real trough of the current bear market is formed. It is worth noting that some market analysts believe that this report from Goldman Sachs represents a change in the bank's long-term optimism about the US stock market. In addition to Wall Street's two major investment banks warning investors that U.S. stocks have not fallen enough, Michael Burry, a major U.S. stock market bear, also said on social media: The market has not bottomed out. Burry also pointed to the recent closure of two exchange-traded funds (ETFs) tracking special-purpose acquisition companies, one of the products of a huge bubble in recent years. The two funds traded without investors for less than two years as share prices plummeted. In another tweet Wednesday, he linked the recent collapse in cryptocurrencies, retail-favored meme stocks and special purpose acquisition company transactions (SPACs) to the market crashes of 2000 and 2008 with what he expects to be this year. . Burry was one of the first investors to spot the impending subprime mortgage storm and has a reputation as a "big bear" on Wall Street. However, in the past year, he has frequently "predicted" on social media that the U.S. stock market is about to collapse and the U.S. economy is about to collapse, but it has brought a lot of trouble to many investors who follow him. ⭐Starred Wall Street news, good content not to be missed ⭐This article does not constitute personal investment advice, nor does it take into account the special investment goals, financial situation or needs of individual users. Users should consider whether any opinions, views or conclusions contained herein are appropriate to their particular circumstances. There are risks in the market, investment needs to be cautious, please make independent judgments and decisions.
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