Stock Market News

This is a Bear Rally, True Lows in the S&P 500 are Below 3600 – BofA Strategist

2022.07.29 16:21

This is a Bear Rally, True Lows in the S&P 500 are Below 3600 - BofA Strategist
This is a Bear Rally, True Lows in the S&P 500 are Below 3600 – BofA’s Hartnett

By Senad Karaahmetovic

Bank of America’s top strategist continues to see the ongoing bounce in the S&P 500 as a relief rally that will end likely around 4200.

His bear case scenario is a rotation around these levels to print “true lows”, which are likely below 3600.

“’Inflation shock’…check, ‘rates shock’…check, ‘recession shock’… check, and 24 hours after abandoning ‘forward guidance’/embracing ‘data dependence’ US enters ‘technical recession’; since catalyst for bear market was repricing of interest rates (took SPX from 4800 to 3800), yields now falling & equities rallying makes sense,” the strategist said in a client note.

He noted that biotech, China tech, and Bitcoin have all soared in recent weeks, but we are yet to witness a peak in yields.

The strategist believes it is “too early to reposition for Fed pivot bull trade”.

As far as flows are concerned, he said investors poured $27 billion into cash in a week to Wednesday, July 27. Moreover, $5.6 billion went to equities, which is the first inflow in 6 weeks.

Finally, the strategist sees the optimism that “Fed done by Thanksgiving = lows are in” as “premature”.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 98,962.51 0.95%
ethereum
Ethereum (ETH) $ 3,442.71 1.34%
tether
Tether (USDT) $ 1.00 0.31%
solana
Solana (SOL) $ 256.47 1.02%
bnb
BNB (BNB) $ 674.80 1.01%
xrp
XRP (XRP) $ 1.51 5.52%
dogecoin
Dogecoin (DOGE) $ 0.433956 1.53%
usd-coin
USDC (USDC) $ 1.00 0.29%
cardano
Cardano (ADA) $ 1.07 2.09%
staked-ether
Lido Staked Ether (STETH) $ 3,446.65 1.59%
avalanche-2
Avalanche (AVAX) $ 47.12 13.55%
tron
TRON (TRX) $ 0.211697 1.44%
stellar
Stellar (XLM) $ 0.53672 5.20%
the-open-network
Toncoin (TON) $ 6.21 0.45%
shiba-inu
Shiba Inu (SHIB) $ 0.000026 0.84%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,062.54 0.65%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,668.44 0.67%
polkadot
Polkadot (DOT) $ 9.14 3.52%
chainlink
Chainlink (LINK) $ 18.65 7.54%
bitcoin-cash
Bitcoin Cash (BCH) $ 527.81 4.29%
weth
WETH (WETH) $ 3,435.97 0.99%
sui
Sui (SUI) $ 3.47 1.11%
pepe
Pepe (PEPE) $ 0.00002 0.35%
near
NEAR Protocol (NEAR) $ 6.92 6.39%
leo-token
LEO Token (LEO) $ 8.18 5.90%
litecoin
Litecoin (LTC) $ 98.71 0.53%
uniswap
Uniswap (UNI) $ 11.71 7.30%
aptos
Aptos (APT) $ 12.75 1.72%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,620.31 1.01%
internet-computer
Internet Computer (ICP) $ 12.34 7.85%
hedera-hashgraph
Hedera (HBAR) $ 0.146489 1.83%
usds
USDS (USDS) $ 1.00 0.36%
crypto-com-chain
Cronos (CRO) $ 0.190509 2.00%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.577028 1.84%
ethereum-classic
Ethereum Classic (ETC) $ 29.65 1.03%
render-token
Render (RENDER) $ 8.15 3.63%
bittensor
Bittensor (TAO) $ 539.21 2.43%
kaspa
Kaspa (KAS) $ 0.157064 3.43%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.52 0.72%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.22%
arbitrum
Arbitrum (ARB) $ 0.878542 2.03%
bonk
Bonk (BONK) $ 0.000048 3.68%
whitebit
WhiteBIT Coin (WBT) $ 24.52 0.76%
vechain
VeChain (VET) $ 0.043543 0.91%
dai
Dai (DAI) $ 1.00 0.26%
celestia
Celestia (TIA) $ 8.11 13.35%
filecoin
Filecoin (FIL) $ 5.74 0.50%
cosmos
Cosmos Hub (ATOM) $ 8.78 1.19%
okb
OKB (OKB) $ 56.06 0.14%
blockstack
Stacks (STX) $ 2.24 7.32%