UBS predicts S&P 500 drop in Q1 2024, cautions on bull trap

<p>UBS is looking for the S&amp;P 500 to trade lower in Q1 of 2024, forecasting down to 4280 in March.</p><p>The upmove we've seen (prior to Wednesday!) may be, what UBS is calling, a ‘bull trap’:</p><ul><li>We still think that the current breakouts is the setup for a classic bull trap instead of believing in the start of a larger breakout campaign</li></ul><p>Citing as reasons to be wary:</p><ul><li>low volatility</li><li>yields hitting oversold levels</li><li>divergences with UBS' proprietary indicators</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.