HSBC strategist: models suggest US stocks will fall further

Equity cycle models suggest the US stock market is now in a "sell-off" mode, which typically lasts a month, with the SP 500 falling by an average of 10 per cent, HSBC said. Strategists including Duncan Toms and Max Kettner wrote that the general pullback in US equities has further to go. They say "sell-off" periods tend to be relatively short-lived and may present opportunities to increase exposure, at least tactically, but now is not the time as sentiment indicators suggest it is too early to buy on the downside.