Downtrend sell short SP500 NASDAQ

٩ سبتمبر

Traders, both the 3-month Treasury Bill rates and the S&P 500 are showing signs of a correlated downtrend, similar to patterns observed in previous market downturns like 2002 and 2008. Treasury rates appear to have peaked and are now starting to drop, which historically signals a shift to a risk-off environment. This usually leads to capital flowing out of equities and into safer assets, often preceding economic slowdowns.At the same time, the S&P 500 has shown weakness, dropping over 2% recently due to poor manufacturing data and growing economic concerns. With the Fed potentially cutting rates soon, there's increasing volatility, particularly in tech stocks, which reinforces the likelihood of a substantial market correction. Prepare for what could be a prolonged downtrend based on these signals.