In 3 trading sessions this week, the S&P 500 is down approximately 2.85%. This pace has not been observed since March, when traders feared a banking crisis.

Possible reasons for the current decline:
→ at the end of August there will be a summit in Jackson Hole, where representatives of central banks will gather. Powell is expected to speak on August 25. It is acceptable to assume that market participants fear the continuation of a tight monetary policy. In parallel, the BRICS summit will be held in South Africa, which Xi Jinping will visit.
→ Prospects for an economic crisis in China that could spread to the whole world. Today it became known that the largest Chinese developer Evergrande (whose shares are traded in New York) has filed for bankruptcy, which should lead to new bankruptcies.
→ A series of reports of companies from the index for the Q2, which disappointed investors.

Meanwhile, Markets Insider publishes the opinion of experienced investor Bill Miller, who believes that after a strong first half of the year, a second may follow. Moreover, inflation is declining, while GDP growth remains stable.

The chart of the S&P-500 index shows that the decline accelerated after the bears cleared a block of support from the median line of the ascending channel and the level of 4,460. The next such block may form the lower line of the channel, where support from the June low also passes. At the same time, the results of the summits in Jackson Hole and Johannesburg may contribute to the return of positive to the market.

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