BTIG's chief technical analyst warns: S&P 500 breaking key support could signal the end of the rebound.

The chief market technician of the well-known financial services company BTIG, Jonathan Krinsky, pointed out in his latest report that the S&P 500 index falling below the key technical level of 5670 points indicates that the momentum of the recent two-month counter-trend rally may be running out. Krinsky stated in a client report on March 28th that the S&P 500 failed to hold the key support level of 5670 points, which was once seen as a bullish defense line, signifying a fundamental shift in market sentiment. "We originally expected the index to challenge the 5900 level, but after dropping below 5640 points, this optimistic scenario in the short term has become difficult to achieve," he emphasized. He also mentioned that the common end-of-month fund rebalancing inflows were completely suppressed by the risk aversion sentiment before the tariff announcement on April 2nd, indicating that investors are preemptively dealing with policy uncertainties. Despite the common occurrence of a reversal market trend of "sell the rumor, buy the news" after significant bearish news, Krinsky analyzed from a technical perspective that the S&P 500 is showing a fragile trend towards revisiting the recent low point of 5500 points. "The market is clearly lacking control, and after failing to break through the 200-day moving average, the index not only filled the gap at 5670 points but also continued to probe new lows." Sector rotation shows that the current market lacks a clear direction for sustained leadership. "Apart from precious metals, it is difficult to find sectors maintaining an upward trend," said Krinsky, pointing out that this disorderly state makes it challenging for the bulls to build effective positions. It is worth noting that the ratio of low volatility ETF (SPLV.US) to high beta index ETF (SPHB.US) has reversed most of its recent gains, releasing a clear risk-off signal.