‘S&P 500 to hit 3,500’: J.P. Morgan warns of 15% drop by summer —
For the past month, the S&P 500 has been hovering mostly around the 4100s without breaking out meaningfully in either direction. However, J.P. Morgan’s head of technical strategy Jason Hunter thinks that is about to end, and not in a good way for the bulls – at least in the short term.
“We continue to expect a sell off from that area to retest medium-term support at the 3764 Dec low and 3760 Oct 61.8% retrace this spring, and look for an eventual extension back to key levels near 3500 by early summer,” Hunter recently said. “We believe that will ultimately set a cycle bottom, especially if that weak performance is accompanied by impulsive yield curve steepening. Until that setup emerges, we suggest maintaining a bearish bias and staying defensively positioned.”
