The S&P 500 looks like it needed a break from sellers to gain more energy. The economic fundamentals support a bear market in the near term after this short bounce.
The shorts need a level of support. The bear market just started.
U.S. Stock Markets - Selling Could Continue:
Institutions and trader that were not able to reduce exposure over the last 7 to 8 weeks are getting a second chance. This may not last but short sellers need energy and economic data may give them that advantage. Housing and jobs along with inflation will lead the negative news headlines.
U.S. Economic Outlook: Inflation
Core inflation and other measures will continue to rise. This will cause the bond market to adjust accordingly and real rates will rise further
Summer Doldrums: Sell Those Stocks Or Lose Your Job
The orders to get rid of assets will continue. Watch bitcoin and other quick running commodities that need to be liquidated as rates go up and inflation expectations become more anchored.