As mentioned in one of my previous ideas, seasonal correction of US stock market indices usually takes place in the middle of June until the end of the month, a tendency evident from more than 30 years of market observations.
Between June 18th and 22nd, S&P500 managed to make a swift move down to 4120 with a subsequent V-like recovery.
But there is one more week left before the end of the month. Moreover, such corrections tend not to happen one time only. We should wait for new falls, maybe even lower than the previous local minimum.
The current volatility may be triggered by today’s testimony of Jerome Powell in the Congress, where he is expected to provide more comprehensive answers to questions regarding most recent monetary policies that are usually vaguely addressed in official Fed statements.
At the same time, I shall repeat myself in noting that now it’s not reasonable to open a sell position, and it’s better to wait for a series of falls to exit the market at more favourable prices.