Million-dollar question: Between S&P 500 bulls and bears, who would likely win?
The bulls are convinced that the SPX is poised for a "massive upside reversion," while the bears argue that the SPX "can't hold up much longer."
TL;DR
- The S&P 500 is experiencing a standoff between bulls and bears, with weak market breadth contrasting with a flat index.
- Bulls anticipate a significant upside reversion, while bears predict a downturn due to shrinking breadth, rising yields, and widening credit spreads.
- BTIG remains in the bear camp, expecting lower prices as holdouts succumb.
- Mid-caps are below their 200-day moving average and have declined from recent highs.
- High Treasury volumes historically align with an S&P 500 pullback.
- Utilities may offer a favorable risk-reward for a tactical bounce, as they are currently leading despite higher yields.