The big banks can be considered some of the most powerful institutions on the planet, influencing world affairs and the lives of millions of people without exaggeration. And their opinions carry enormous weight. The biggest of them now comes with a warning that there will be a dramatic market downturn and a new bottom.

Last month, the S&P 500 index hovered mostly around 4,100 points, without a significant breakout in either direction. But J.P. Morgan $JPM+0.2% 's chief strategist Jason Hunter thinks change is coming. And not in a positive direction.

"We continue to expect a sell-off from this area to retest intermediate-term support at the December low of 3764, and we expect an eventual pullback to key levels near 3500 by early summer," Hunter said recently.

"We believe this will eventually set a cycle bottom, especially if this weak performance is accompanied by an impulsive steepening of the yield curve. Until such a setup emerges, we recommend remaining bearish and staying on the defensive."

https://www.youtube.com/watch?v=gwE5x_cb4Rs

Rate hikes have had a big impact.

In its December estimate, the FOMC saw the final rate at 5.1%. The current market valuation is now moving higher into the 5.5-6% range following Powell's remarks. As we have seen.

"We believe a break of the 3900 inflection area may lead to accelerated selling pressure as this area has acted as a support for the index since May 2022. It also currently coincides with several trigger levels for trend-following strategies. We see the 3760 - 3764 area as an initial breakout target," JPMorgan technical strategists wrote.

Is JPMorgan the most powerful financial institution?

JPMorgan Chase is one of the largest and most powerful banking and financial institutions in the world. It was founded in 2000 by the merger of J.P. Morgan & Co. and Chemical Bank Corporation. The history of J.P. Morgan & Co. dates back to 1900, when it was founded by legendary financier J.P. Morgan.

JPMorgan is undoubtedly one of the most powerful financial institutions on the planet. It is headquartered in the magnificent One Chase Manhattan Plaza skyscraper in New York City. In addition to New York, it operates in more than 100 countries, employing approximately 250,000 people and serving tens of millions of clients. JPMorgan has nearly $2.5 trillion in assets under management and annual sales of over $115 billion.

JPMorgan is the largest banking services provider in the U.S. and leads a broad range of financial services including banking, payments, trading, investments, mortgage, consumer and commercial banking. It is also a global leader in asset management, private banking and investment banking. Its key divisions include Chase Bank, JPMorgan Investment Bank, JPMorgan Private Bank and Chase Card Services.

JPMorgan is an admired icon of the financial industry and a strategic partner to governments, corporations, institutions and private clients around the world. During the 2008 financial crisis, it received a massive bailout from the U.S. government, making it one of the most stable and profitable large banks.

Disclaimer: This is in no way an investment recommendation. It is purely my summary and analysis based on data from the internet and other sources. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.