Even Closerrrrr to New Lows
Only a -2.4% drop to a new downturn low
The S&P 500 closed at 3,789.93 on Wednesday, which was pretty close to the downturn low of 3,666.77 set on June 16th. The market then went down to 3,757.99 yesterday for a modest decline of -0.84%.
But, now, the S&P 500 is only -2.4% away from a new downturn low! That won’t look good for the narrative that the bottom is already behind us…
I saw a stat from an institutional analyst that the market has never made new lows after it recovered 50+% of it's recent drawdown. However, the market certainly tested the support levels.
Despite that stat, I'm interested to see how much lower we can go with cash holdings at all high and low investor sentiment!