Short-term Correction Needed, Bear ETFs SQQQ, SPXY are Winners

U.S. Treasury yields soared and stocks ended lower as Fed Chairman Jerome Powell poured a bucket of ice water on Wall Street's dovish sentiments with a stern tone.

Based on the overbought levels territory, the longest rally of $S&P 500(.SPX)$ since 2004 that was just around the corner came to an abrupt end.

Look at the ETFs tickers, 13 bear ETFs stocks rose over 2%+

According to trading volume as of Thursday's close, only 3 ETFs $Nasdaq100 Bear 3X ETF(SQQQ)$ , $S&P 500 Bear 3X ETF(SPXU)$ , $VIX Short-Term Futures 1.5X ETF(UVXY)$ gained more than 2% in the ETFs list.

Does the U.S. stocks still need to fall?

I saw some analysts point out that $S&P 500(.SPX)$ $10-YR T-NOTE - main 2312(ZNmain)$ synchronicity.

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And the $S&P 500(.SPX)$ is very oversold at 1h...

The major indexes $S&P 500(.SPX)$ have 2 gaps to fill from the rally. After the strong surge up, bulls would prefer to see the right shoulder pullback of the potential inverse head & shoulders have a more shallow pullback than all the way back down to the lower end of the left shoulder.

@ Wade Sickler

What’s more, The trading volume of $Nasdaq100 Bear 3X ETF(SQQQ)$, $VIX Short-Term Futures 1.5X ETF(UVXY)$ , $S&P 500 Bear 3X ETF(SPXU)$has been enlarged to a certain extent.

Seems they will continue to be day trade winners in short term?

But in the long term: there are still some positive signals for the U.S. stock market. $S&P 500(.SPX)$

• US equity funds saw $7.66bn inflows over the past week, which suggests that investors are confident in the potential returns of the US stock market

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• Over the course of the past year, aggregate US liquidity has remained neutral, which can be seen as a positive sign for US stocks and may inspire confidence in market participants.

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