Bearish Pressure Builds
It happened yesterday. The S&P fell again and closed below the 6,500 support level, finishing at 6,477 - a clear bearish signal. There’s still a chance today to recover and end the week back above this threshold. If that fails, the next stop could be around 6,100, where the next support zone sits.
To be honest, I’m not convinced we’ll see a sustained recovery anytime soon. We just made a fresh 6-months-low. The Iran conflict continues without meaningful progress, and oil has climbed above $100, which is likely to push inflation higher globally.
The odds of a broader bear market are rising, and it’s something we should be prepared for. Some blue chips are already showing weakness, Microsoft, for example, is down more than 20% from its all-time high.
Manage your expectations, that’s the best way to navigate market corrections. They happen, they’re normal, and eventually, they pass.