JPMorgan Technical Strategist Flips Bearish on the Stock Market
JPMorgan’s head of technical strategy, Jason Hunter, warns that the stock market may see further moves to the downside in the short to midterm. In a recent CNBC interview, Hunter reveals that JPMorgan is currently bearish on the stock market. Here are the key points:
– The S&P 500’s recent high of 4,607 points indicates that the “tide is turning” for the stock market.
– JPMorgan shifted its bearish view after the market moved above 4,200, but as the markets rolled over again from channel resistance at 4,600, bearish signals started to trigger.
– JPMorgan is closely monitoring the yield curve, which has been inverted for quite some time. An inverted yield curve historically precedes a recession.
– Hunter emphasizes that the timing of these cycles suggests that the stock market may peak and transition into an economic contraction within the next 19 to 24 months.
– The upcoming fourth quarter, combined with the seasonality of September and early October, further supports a bearish outlook for the stock market.
In conclusion, JPMorgan’s technical strategist believes that the stock market is heading in a bearish direction due to the recent market movements and the inverted yield curve. The timing of these cycles and the upcoming seasonality provide additional evidence for a potential economic contraction in the future.
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