S&P 500 ETFs show that investors bought the dip last week

The latest ETF fund flow data shows that market participants purchased the dip in the S&P 500 (SP500) last week. Benchmark tracking funds that mirror the S&P have seen a surge in capital inflows.

The SPDR S&P 500 Trust ETF (NYSEARCA:SPY), Vanguard S&P 500 ETF (NYSEARCA:VOO), and the iShares Core S&P 500 ETF (NYSEARCA:IVV) combined to attract more than $2B in investor funds last week. The SPY led the way, taking in $961.62M. VOO attracted $910.85M and IVV took in $348.51M. All data is per etfdb.com.

Despite the positive capital flows, the S&P 500 still remains close to bear market territory for 2022.

The massive selling so far in 2022 has led investors to a key question: Are we bottoming out or is this a just a dead cat bounce? Even as investors add capital to S&P 500 funds, some financial institutions see further downside risk.

Goldman Sachs is cutting its market forecast for the S&P 500 year to 4,300 from 4,700. Moreover, the institution outlined that if there is a recession, it would push the S&P down to 3,600, which would be an 11% drop from current levels.

For buy-the-dip fans that want to put cash to work, Bank of America created a screener of potential names that have been beaten up in 2022.