S&P500 – Bearish sentiments
- We see retracement in S&P500 back to previous high levels and we see a possibility of it retracing back to the levels seen during the first week of May.
- Several possibilities can be observed from the chart above. The market could consolidate within the ranges of 4,050 and 4,150, continue its rally up to 4,300 observed in early May or resume the original downwards trend, retracing back to 3,800 (a core support level).
- According to the American Association of Individual Investors weekly Investor Sentiment Survey, they reported an overall 53.5% bearish respondents versus 19.8% bullish for the week ending 25th May.
- Traders can prepare to start shorting or trade within the ranges mentioned earlier, keeping in mind of the overall bearish sentiments.
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