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BTIG’s Jonathan Krinsky reiterated his stance that the bears are in full control of the price action in equities.
It’s easier to have conviction in downside moves than in counter-trend rallies in this market, Krinsky told clients in a note.
The strategist sees the Energy sector, by far, the best-performing sector YTD, at risk of a reversal at current levels.
“We continue to think Energy (XLE) is vulnerable here and represents a very poor risk/reward for longs, and good risk/ reward for shorts,” Krinsky wrote.
As far as S&P 500 futures are concerned, the strategist outlined support levels at 3,877, then 3,850, and then Friday’s lows around 3,807.
