{"id":5085,"date":"2026-06-09T15:16:22","date_gmt":"2026-06-09T15:16:22","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=5085"},"modified":"2026-06-09T15:16:22","modified_gmt":"2026-06-09T15:16:22","slug":"heres-why-the-sp-500-index-spym-spy-and-voo-etfs-may-drop-5-4-soon","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=5085","title":{"rendered":"Here\u2019s why the S&P 500 Index, SPYM, SPY, and VOO ETFs may drop 5.4% soon"},"content":{"rendered":"
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The S&P 500 Index has pulled back in the past few days, moving from the year-to-date high of $7,618 to $7,400. This retreat has happened amid profit-taking among investors and as US bond yields jumped following last week\u2019s strong jobs numbers. Still, there is a likelihood that the index and its ETFs like, VOO<\/strong>, SPY, <\/strong>and SPYM <\/strong>may retreat further.\u00a0<\/p>\n

S&P 500 Index at risk as US bond yields jump<\/h2>\n

One reason why the S&P 500 Index and its ETFs like VOO, SPY, and SPYM may retreat further is that US bond yields<\/a> are going up as odds of Federal Reserve interest rate hikes rise.<\/p>\n

Data shows that the ten-year yield rose to 4.55%, its highest point since May 22nd this year. The two-year yield rose to 4.2%, its highest level since February 2025. It has jumped from the year-to-date low of 3.37%. Also, the 30-year yield has moved comfortably above 5%.<\/p>\n

US bond yields are sending a message about the Federal Reserve, with analysts predicting that the bank will hike rates this year. A report released last week showed that the economy created over 172k jobs last month, while the jobless rate remained at 4.3%.<\/p>\n

Another report expected on Wednesday are expected to reveal that the US inflation continued rising in May. The average estimate is that the headline CPI rose to 4.3% in May, moving further away from the Fed\u2019s target of 2.0%. <\/p>\n

As such, it is likely that the stock market will have a brief retracement as traders position for a rate hike. If this happens, it will likely spark another confrontation between President Donald Trump and Kevin Warsh.<\/p>\n

SpaceX IPO may trigger a stock market pullback<\/h2>\n

Another potential reason why the S&P 500 Index and its top ETFs like VOO and SPY may crash further is the upcoming SpaceX IPO<\/a>,<\/strong>which will happen on June 12. <\/p>\n

In theory, the IPO should be bullish for the stock market. For one, estimates are that the company will raise $150 billion, double the $75 billion it planned to raise. <\/p>\n

In practice, however, the IPO may lead to a pullback if it follows a similar paths to other companies. In this case, there is a likelihood that the SPCX stock will surge after the IPO and then retreat. This is a similar situation that happened with other companies like Circle Internet Financial, Figma, and Medline. <\/p>\n

Such a pullback may lead to more weakness across the board as investors start booking profits. We saw this brutal sell-off on Friday as top AI stocks like Broadcom and AMD plunged.<\/p>\n

Technicals suggest that the S&P 500 Index may retreat<\/h2>\n
<\/figure>\n

SPX Index chart | Source: TradingView<\/em><\/p>\n

The daily chart shows that the S&P 500 Index peaked at $7,618 earlier this month and then pulled back to $7,400. A closer look shows that the Percentage Price Oscillator (PPO) have made a bearish crossover. This crossover is a bearish sign in technical analysis.<\/p>\n

The Relative Strength Index (RSI) has dropped from the overbought level of 77.35 to the current 50. It is also pointing downwards, which is a bearish sign. <\/p>\n

Therefore, the most likely scenario is where the index retreats and then retests the key support at $7,000, its highest point in January. A move towards that level will be bullish as it will confirm the break-and-retest pattern. Such a drop will also happen with the VOO, SPY, and SPYM ETFs. They will eventually bounce back to a new record high.<\/p>\n

The post Here\u2019s why the S&P 500 Index, SPYM, SPY, and VOO ETFs may drop 5.4% soon<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The S&P 500 Index has pulled back in the past few days, moving from the year-to-date high of $7,618 to $7,400. This retreat has happened amid profit-taking among investors and as US bond yields jumped following last week\u2019s strong jobs numbers. Still, there is a likelihood that the index and its ETFs like, VOO, SPY,…<\/p>\n","protected":false},"author":1,"featured_media":5086,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5085","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5085","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5085"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5085\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/5086"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5085"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5085"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5085"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}