JPMorgan Team Says Flows Show the Buy-the-Dip Mantra Is at Risk
- Strategists say large Monday ETF outflow ‘rather concerning’
- S&P 500 has fallen below 50-day moving average line of support
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Flow measures for the S&P 500 Index signal that the psychology of buying the dip in U.S. equities is fraying, according to JPMorgan Chase & Co. strategists.
An outflow of $11 billion from equity exchange-traded funds on Sept. 20 -- the biggest on a down day this year outside of quarterly options and futures expirations -- is “rather concerning” because it’s inconsistent with the buy-the-dip behavior that’s helped propel equities higher for months, JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a note Wednesday.