S&P 500 erases 4.5% rally, marking biggest bull trap of 2025
The BULL trap:
We just witnessed the biggest bull trap of 2025 with the S&P 500 erasing a ~4.5% rally in ~3 hours.
Between 10:30 AM ET and 3:15 PM ET, the S&P 500 erased -$2.3 TRILLION of market cap.
Bull traps are TEXTBOOK signs of a bear market.
(a thread) pic.twitter.com/sGIqMRluiE
— The Kobeissi Letter (@KobeissiLetter) April 8, 2025
If you’re a retail investor thinking of jumping into the stock market because you believe it will “bounce back like it always does,” you’re in for a harsh reality. The market dynamic we’re facing now is completely different and will unfold over many months or even years.
The… pic.twitter.com/6SuPdVmcPB
— Jacob King (@JacobKinge) April 8, 2025
$SPY open around 4% green, now we are 3% in the red 😭
— Tom (@TradingThomas3) April 8, 2025
Retail investors continue piling into stocks:
Retail investors’ net inflows into US ETFs and single stocks hit a record ~$40 billion in March.
This is ~$10 billion higher than the previous all-time high posted at the beginning of the 2022 bear market.
Not even the meme stock… pic.twitter.com/zWGh0BkOkh
— The Kobeissi Letter (@KobeissiLetter) April 8, 2025