Investors should react aggressively if market breaks 6,150, says JPMorgan's Jason Hunter

About this Video

• Video Title: Investors should react aggressively if market breaks 6,150, says JPMorgan's Jason Hunter
• Channel: CNBC Television
• Speakers: Scott (host), Jason Hunter (JPMorgan's head of technical strategy)
• Duration: 00:04:13

Introduction

This CNBC interview features Jason Hunter, JPMorgan's head of technical strategy, discussing key market support levels and potential risks. Hunter analyzes the current market situation, focusing on the 6150-6200 support level and the implications of a potential market break below this point. He also comments on seasonal market trends, the performance of various market sectors (including high-beta stocks, tech, and defensives), and the implications for investor strategy.

Key Takeaways

• Key Support Level: The 6150-6200 range is a crucial support level for the market. A break below this level suggests a need for an aggressive investor response.
• Seasonal Market Trends: August is seasonally positive for the market, but September and mid-October are riskier periods.
• High-Beta Stock Performance: High-beta stocks have recently outperformed, providing resilience to the market; however, a potential rotation toward higher-quality, defensive stocks could signal a market shift.
• Rotation to Quality: A rotation from high-beta to quality (defensive) stocks, such as the "Mag-7" tech giants, may be an indicator of a market downturn. These defensive stocks, while seemingly unusual, are considered defensive in the current market landscape.
• Aggressive Buying Strategy: If the market breaks below 6150-6200, even potentially to the 5800 level, Hunter suggests an aggressive buying strategy.