S&P 500 Gets Hammered to Break Major Support for the Week

The S&P 500 has broken down significantly during the course of the trading week as we have smashed through the 4500 level quite drastically. At this point, the market is very difficult to jump into and try to take advantage of any type of value, because the Federal Reserve is getting ready to tighten rates, and it has a lot of different people out there freaked out. After all, anything that has a high multiple, which is a huge portion of the stock market, it makes a certain amount of sense that we would see people running from those markets as interest rates go much higher.

S&P 500 Video 24.01.22

At this point in time, it simply a matter of trying to take risk into account. After all, if you can get more of a return on a bond than previously thought, then it makes a certain amount of sense that we would see people running towards the guaranteed return and the safety of that instead of trying to pick up major risk at this point. That being said, it is probably only a matter of time before we would see some type of value hunters coming back in. That also would coincide nicely with the idea of the Federal Reserve possibly having to walk back some of its hawkishness. At this point, it is not ready to do but if the markets keep falling apart the way they have, then it makes a certain amount of sense that we would see a complete bounce. It is too early to talk about that, and it is more likely than not that we have further to go to the downside.

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