The S&P 500 (^GSPC) has formally closed in correction territory. Shares have been battling a number of financial headwinds – greater for longer rates of interest, Treasury bond yields, geopolitical conflicts, chaos in Congress, and extra. Now, the index is close to what some name the “dying cross” – a market chart sample reflecting the index’s short-term and long-term shifting averages. TheoTrade Chief Market Technician Jeff Bierman joins Yahoo Finance to debate what this implies for traders and the larger image available in the market.
Bierman explains whereas seasonally, the market needs to be headed for a rally, it will not be what it appears: “I feel the rally itself goes to be short-lived. I do know you have heard the expression ‘location, location, location’ properly for me its ‘rates of interest, rates of interest, rates of interest’. I’ve carried out interviews all yr lengthy… and I stored saying its the yr of re-calibration. You are not going to flee rates of interest as a result of its a kryptonite that forces all of the re-calibration of valuation metrics, particularly on progress shares.”
For extra knowledgeable perception and the most recent market motion, click here to look at this full episode of Yahoo Finance Dwell.
