The S&P 500 fell for three days in a row for the first time since early September. BTIG believes further downside is possible in the short term. Chief market technician Jonathan Krinsky said there was a “good chance” the market-wide index could fall as much as 5% to about 5,500 in the coming weeks. The S&P 500 has fallen this week from its record high set on October 17th. On Wednesday, the benchmark used by most professional investors closed at 5,797.42. Krinsky pointed to the recent rise in U.S. Treasury yields as a major factor. On Wednesday, the 10-year Treasury yield rose above 4.25%, its highest level since late July. Yields fell slightly on Thursday, but the 10-year note is still up about 40 basis points this month alone. .SPX YTD Mountain SPX YTD YTD “The bullish view is that bond prices are resetting where they should be based on a stronger-than-expected economy,” Krinsky wrote. “While that may be fair in the grand scheme of things, markets are always more concerned with the speed of movement than overall levels, and the fact that stocks remained undaunted in the face of these movements suggests complacency. “Whether or not this is the beginning of pre-election jitters, there remain downside risks to stocks overall in the coming weeks,” the technical analyst said. To be sure, there are some bright spots for investors in the form of solid financial results. Tesla reported strong third-quarter results, and its stock rose 10%. UPS and Whirlpool rose 8% and 4%, respectively, on strong quarterly results. Elsewhere on Wall Street this morning, JPMorgan reiterated its Overweight rating on Live Nation and raised its price target by $137, suggesting an upside of more than 19%. “Live Nation, a global leader in live entertainment, ticketing and talent management services, is supported by a remunerated management team focused on the continued monetization of artist, touring and venue content, and has multiple “We believe this is a long-term free cash flow growth story,” JPMorgan said.
