-S&P 500 short-term resistance: 5,500–5,600, key support: 4,800.
-Dow plunged 1,300+ points intraday on Monday.
-Gold and emerging market equities are outperforming.
-Market volatility persists amid trade and Fed-related uncertainty.
Opinion
-Market remains structurally damaged, with more downside possible.
-Defensive rallies signal weak upside momentum.
-Time, not aggressive buying, is critical for market recovery.
-Diversification into gold and overseas assets is increasing.
Core Sell Point
The market remains defensive and unstable, with no confirmed bottom yet.
Market Overview
Technical analysts warn that the stock market has yet to find a true bottom, as tariff chaos and challenges to Federal Reserve independence weigh heavily. On Monday, the Dow plunged over 1,300 points intraday, triggered by worsening U.S.-China tensions and political pressure on Fed Chair Jerome Powell.
Technical Outlook
Despite a recent rebound, analysts say the S&P 500’s internal structure remains defensive. Volatility is expected to persist.
Jonathan Krinsky (BTIG): Expects a retest of the 5,000–5,100 zone. Warns markets remain defensive despite attempts to rebound.
JC O'Hara (Roth MKM): Predicts an extended correction, emphasizing that repairing technical damage will take time.
Ari Wald (Oppenheimer): Suggests buy-on-dips and sell-on-rallies strategy. Highlights resistance at 5,500–5,600 and key support at 4,800.
Safe-Haven Shift
Gold and gold mining stocks are gaining favor as investors seek safety. Analysts highlight emerging markets like China and Brazil as relatively attractive alternatives to the struggling U.S. market.
Strategic Views
Rob Ginsberg (Wolfe Research): Cautions that U.S. rebounds are weak, driven by defensive sectors rather than cyclical strength. Sees better opportunities overseas.
Broader market trends suggest time, not immediate action, is required for recovery.
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