Raymond James Warns of Potential 10% S&P 500 Decline Amid Weak Market Breadth
Raymond James has issued a cautionary note on the S&P 500, suggesting the index could face an 8-10% correction over the next one to three months. The warning follows recent "mechanical sell" signals across major indices, including the Nasdaq 100 and Dow Jones, with weak market breadth exacerbating downside risks.
Technical analyst Javed Mirza highlights the S&P 500's position below its 50-day moving average as a key resistance level. Historically, such conditions have preceded intermediate-term underperformance. The current narrow participation in market gains raises concerns about sustainability.
While traditional markets face headwinds, cryptocurrency investors may view this as a contrasting opportunity. Digital assets often exhibit low correlation to equities during risk-off periods, potentially offering portfolio diversification benefits amid broader market volatility.
