"The SPDR S&P 500 ETF Trust ( NYSEARCA:SPY) has traded essentially flat over the past month, slipping 1.13% as investors grapple with uncertainty regarding the Federal Reserve's policy trajectory and concentration risk in mega-cap tech stocks. Retail investors have responded to the pullback with mixed sentiment on social media, with discussion shifting from bullish to bearish as traders debate whether current levels represent a buying opportunity or signal further downside."
"Yet fundamentals tell a different story. Earlier in the week, discussions on r/stockmarket indicated that more than 75% of S&P 500 firms reported year-over-year earnings growth, and core PCE inflation is at just 1.82%, well below the Federal Reserve's 2% target. These data points supported bullish sentiment scores in the 65-78 range early in the week before capitulation narratives took over."
SPY traded essentially flat over the past month, slipping 1.13% amid uncertainty over the Federal Reserve's policy trajectory and concentration risk in mega-cap tech stocks. Retail sentiment on social media shifted from bullish to bearish as traders debated whether current levels offered a buying opportunity or signaled further downside. SPY's RSI at 43.91 approaches oversold territory but remains above historical capitulation thresholds. The ETF gained 11.95% over one year while the Fed cut rates by 75 basis points to 3.75% as inflation eased. Retail posts showed heavy losses on SPY puts, while more than 75% of S&P firms reported year-over-year earnings growth and core PCE stood at 1.82%.
Read at 24/7 Wall St.
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