S&P 500 ($S&P 500(.SPX)$) could reach 3,400 by year-end.
According to Ray Dalio, US equities could fall another 20% if the Fed raises interest rates to 4.5%. With red-hot inflation data coming in higher than expected this week, the Fed may have to front-load interest rate hikes to cool the US economy. More quantitative tightening is not a good sign for the markets and is likely to cause another selloff into year-end.
According to the daily charts, the next level of support is at the June lows of 3,634. Should this level fail to hold, there is a high possibility that we retest the Feb 2020 highs of 3,400, which previously acted as resistance. This move to 3,400 implies a downside move of ~15%.
Get ready for your puts/hedges! Things are looking gloomy!
@TigerEvents @TigerStars @TigerPM
Comments