Sp 500 Correction Is Very Close

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Sp 500 Correction Is Very Close

Goldman Sachs Warns About Upcoming S&Amp;Amp;P 500 Correction

According to Goldman Sachs analysts, a correction in the S&P 500 index is imminent and just around the corner. That's why Goldman Sachs has warned investors to avoid the urge to buy the dip.

Goldman Sachs analysts have highlighted various indicators which hint at the upcoming downturn in the S&P 500 index.

Goldman Sachs Warns About Buying The Dip

According to them, the 17th of July was the day that officially marked the end of the S&P 500's bullish period. Even if we look at historical performance, the time after the 17th of July usually leads to a downturn.

They also added that the S&P 500 index has managed to make around 38 all-time highs in the year 2024. If we look back, the only time such a thing happened was in 1995. Over all, the year 2024 has already become the 2nd strongest in the last 100 years.

Given the extremely bullish performance of the S&P 500 this year, Goldman Sachs has issued a warning about buying the dip.

Normally, investors buy the dip under the assumption that the uptrend will resume once again & they will be able to buy at a discount. But in this case, Goldman Sachs believes that the correction will last for a long time & many investors might not be able to hold or even stay solvent for that long.

The note from Goldman Sachs also indicated that the options expiring in July will also lead to higher volatility in the market.

Additionally, a slowdown is observed in the passive inflows while the imbalance of 'market on close' has stood at $8 billion during the last three days.

And last but not least, the market dynamics has also gone through a shift as the small caps have started to outperform the megacaps, a rate occurrence for the S&P 500.

Over all, Goldman Sachs is worried that the recent bullish trend in the S&P 500 is not sustainable and thus investors should be vigilant of the upcoming correction wave.

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