From Seekingalpha · ANG Traders · · 40s
This Is Not The Start Of The Feared Bear
Market decline signals seasonal weakness, not bear market start.
In brief
Market decline signals seasonal weakness, not bear market start. ANG Traders' analysis shows last Friday's market drop is seasonal fiscal-year weakness, not the start of a bear market. Originally reported by Seekingalpha.
Market Decline
Last Friday's market decline does not signal the start of a bear market.
Seasonal Fiscal Weakness
Seasonal fiscal-year weakness is in play, not a bear market.
Treasury Rate Inversion
Bear markets and recessions typically follow a second 10y-2y Treasury rate inversion by 6, 18 months.
S&P 500 Stability
Rising Treasury collateral held by banks suggests S&P 500 unlikely to experience sustained near-term drop.
What to remember
ANG Traders' analysis shows last Friday's market drop is seasonal fiscal-year weakness, not the start of a bear market.
