Us stocks fell 4% in a single day, 3% short of triggering a circuit breaker! What should we do now?

Stock symbol: $S&P 500 Index(.SPX.US)$

The S & P 500 index of US stocks opened lower yesterday, down 4.32 per cent, as both CPI price data, which represents inflation, and non-farm payrolls data, which represent employment levels, beat expectations.

CPI price level data representing inflation and non-farm payrolls data representing employment levels have created a perfect economic background (that is, there is no need to worry too much about the impact of interest rate increases on employment and the need for greater interest rate increases to control inflation). This has led the Fed to have more reason to announce greater interest rate hikes in the next FOMC to control inflation, leading the market to expect the Fed to abandon its previous expectations of 50 basis points. Move to a higher expectation of 75 basis points or even 100 basis points.

Due to the principle that the increase in interest rates led to a decrease in money in the market and stock prices fell, the US stock market poured down. From the point of view of the trend, SPX500 swallowed up the previous rebound after closing down 4 per cent yesterday. Now SPX500 has once again reached the support of the 3900 price and the short-term upward trend. If the subsequent stock price falls below this support again, we can see a lower price of 3700 or pre-low support. No one knows whether the market will fall below this support. As retail investors, we only need to follow the market. At present, what we can see is that SPX500 as a whole is in a long-term or downward trend, so under the operation of following the trend according to the leek principle, we still have to continue to be bearish on US stocks until we break through the downward channel to change our thinking.
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Keep in mind the three principles of CHIVEST leek: 😍
✅ does not operate against the trend.
✅ does not follow suit to buy stocks.
✅ doesn't buy stocks that he doesn't understand.
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Disclaimer
This analysis is provided by the CHIVEST team and only represents the analysis and recommendations of the team, not as a basis for buying and selling. There are risks in entering the market. You need to be cautious in investment. Please bear the risk yourself. All rights reserved, all reprints or unauthorized embezzlement must be investigated.