JP Morgan are looking for even further falls for the S&P500

A snippet from JP Morgan on the US equity market. They've been eyeing the downside for a good while now, today is no different: My bad, I was thinking of Morgan Stanley ... thanks to Basil in the comments for the correction.

JP Morgan:

• liquidity Liquidity Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Liquidity refers to the extent of a financial instrument’s ability to be bought or sold without causing price fluctuations. Thus, if an asset is extremely liquid, it means one can trade that asset in the knowledge that one’s specific dealing won’t create significant movements in the market.This is because there exists such a large number of traders going both long and short, generating huge volume for that particular asset. Liquidity in the FX MarketTake the example of the foreign exchange marke Read this Term remains terrible
• there is no real demand around for anything
• the pipes and plumbing for the market will only get worse once June rolls around ... few are willing to step in front of it
• Once we broke above 4,000 the debate became whether you sell 4100, 4200, 4300 or 4400. It's easy to say things feel terrible but whether it's a straight or squiggly line we still think the risk is to the downside

JPM referring to the regular (northern) summer doldrums in June.