What Bitcoin Investors Should Takeaway from S&P 500 Stocks Being Shorted At An Alarming Rate
Last week the S&P 500 index fell the lowest since late March, and it got very close to the 2,800 mark. Now, the S&P 500 index remains close to the 2,850 point.
The nearest important resistance level of the S&P 500 index remains at 2,885-2,890, marked by the recent local highs. On the other hand, the support level is at 2,850-2,855. The support level is also at around 2,830, marked by Monday’s local low.
The S&P 500 posted 28 new 52-week highs and 27 new lows; the Nasdaq Composite recorded 22 new highs and 189 new lows.
Analysts are expecting a bearish trend, a lot of which can be traced to the ongoing tension with China. A day after Washington's temporary easing of curbs against Huawei Technology Co Ltd provided respite to U.S. stocks, reports that the White House could impose restrictions on another Chinese technology company rattled U.S. stocks anew.
Fears of retaliatory moves by the US and China will impede global growth have kept investors on edge, putting the S&P 500 on track to post its first monthly decline since the December sell-off.
Jamie Cox, managing partner at Harris Financial Group in Richmond said:
“We’re going to see a drift lower until there’s a resolution of what’s happening with China. If you’re trading, it’s not a bad idea to put yourself on the sidelines and sit it out.”
Short interest as a percentage of shares outstanding on SPY, climbed as high as 7% this week. This marks the highest share since 2015 when the benchmark standard for American equities slipped into a correction when the rates were increased by ed officials.
On the same issue, Matthew Litfin, a money manager at Columbia Threadneedle Investments added:
“There are some clouds forming on the horizon. You also can’t really have this Goldilocks thing that we’re in, where the economy is pretty good and the Fed’s seen to be easing. The Fed doesn’t feed the fire, the Fed takes away the punch bowl. They don’t refill the punch bowl at the party.”