JPMorgan trading team issues S&P 500 buy signal, expects tactical upside opportunity in US stocks

Odaily reported that the JPMorgan Global Market Intelligence team released a report stating that its U.S. Tactical Positioning Monitor has issued a buy signal for the S&P 500 Index, as current U.S. equity positions have dropped to levels that present value for contrarian allocation. Historical data shows that after similar changes in positions, the S&P 500 Index has on average risen about 3% over the following 20 trading days.

The report believes that a pullback in U.S. Treasury yields, a weaker dollar, robust corporate earnings, easing tensions in the Middle East, and the Federal Reserve’s expected decision to keep interest rates unchanged will collectively support U.S. equities’ short-term performance. However, the report also notes that positioning in the semiconductor sector is overly crowded and heightened tensions between the U.S. and Iran remain major risk factors. (Bloomberg)