The S & P 500 suffered its first three-day decline since early September. BTIG thinks there may be more near-term downside ahead. Chief market technician Jonathan Krinsky noted a “decent probability” the broad market index could fall as much as 5% to roughly 5,500 in coming weeks. The S & P 500 has pulled back this week from record highs reached Oct. 17. On Wednesday, the benchmark used by most professional investors closed at 5,797.42. Krinsky pointed to the recent move higher in Treasury yields as the key catalyst. The 10-year Treasury note yield soared above 4.25% on Wednesday, hitting its highest level since late July. Yields eased slightly Thursday but the 10-year is still up about 40 basis points this month alone. .SPX YTD mountain SPX year to date “The bullish narrative was that bonds were re-pricing to where they should be based on the stronger-than-anticipated economy,” Krinsky wrote. “While that might be fair in the big picture, markets are always concerned with the velocity of the move rather than the overall level, and the fact that stocks didn’t flinch in the face of those moves suggested complacency.” “Whether this is the start of the pre-election jitters or not, we continue to see downside risk for equities broadly over the coming weeks,” the technical analyst said. To be sure, there are some bright spots for investors in the form of solid earnings results. Tesla reported a third-quarter beat, sending shares higher by 10%. UPS and Whirlpool surged 8% and 4%, respectively, on the back of strong quarterly results. Elsewhere on Wall Street on Thursday morning, JPMorgan reiterated Live Nation with an overweight rating and raised a $137 price target, implying upside of more than 19%. “A global leader in live entertainment, ticketing, and talent management services, we see Live Nation as a multi-year free cash flow growth story supported by a management team focused and compensated on continued monetization of artist, tour, and venue content,” JPMorgan said .
