JPMorgan’s head of technical strategy, Jason Hunter, has warned that the stock market may see further moves to the downside in the short to midterm. Hunter believes that the “tide is turning” for the S&P 500 after the stock market index printed a recent high of 4,607 points. He also noted that JPMorgan is currently bearish on the stock market.Hunter is keeping a close watch on the yield curve, which plots the interest rates of government bonds versus maturities. An inverted yield curve occurs when short-term bonds have a higher yield than long-term debt instruments. An inverted yield curve has often historically preceded a recession since the 1970s. Hunter believes that the yield curve has been inverted for quite some time now, which does not bode well for the stock market.Hunter believes that the combination of the yield curve being inverted and the seasonal pattern of the stock market suggests that the pendulum is swinging back in the bearish direction. He believes that this could lead to a cycle peak in equity markets that could transition into an economic contraction.

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Information	Details
Geography	North America
Countries
Sentiment	negative
Relevance Score	7
People	The Daily Hodl, Jason Hunter, CNBC
Companies	JPMorgan, S&P 500, The Daily Hodl, CNBC, yield curve
Currencies	None
Securities