Yesterday before Jerome Powell spoke, markets we underestimating chance of 25bos hike. Now it seems like we can expect another 25bps hike in May. With current conditions there are increasing odds for bear market coming as SP is falling closer to sub 3900 support levels.
Also notice rejection from exponential moving averages (EMA 55 and EMA 200 at 1D chart). Those are not good signs. More red flags come from indicators RSI (rejection below resistance) and MACD which is down ticking again.
With expectations of S&P EPS falling ... P/E Will be considered overvalued and risky. While you can earn up to 4,5-5% p.a. by just holding government bonds. So why the hell should S&P 500 go up from this point?
If 3900 bps support break, than we are heading MUCH LOWER. Brace yourself.