We’ve closed out the first half of 2022 with the worst YTD performance in 52 years for the S&P, and worst half on record for the Nasdaq. Inflation, rising interest rates, and recession fears continue to dominate the bearish sentiment in the markets. The S&P 500 index (SPX) is down 20.6% year-to-date, placing the widely-considered benchmark of equity performance in bear market territory. On a technical basis, we are watching the 3850 resistance zone on the S&P as a key level to indicate a shift from bearish to bullish sentiment. If we see the SPX break and sustain closes above this level, it may be an indication that selling pressure has subsided and there is potential for a more sustained rebound. If we continue to see monthly closes below this level in the coming summer months, we anticipate a deeper sell-off into the third quarter.