đš $SPX IS STARTING TO LOOK INTERESTING
A lot of traders may see the current weakness as nothing more than a normal pullback.
Iâm not convinced itâs that simple.
Inflation is picking up again, the Fed is sounding more hawkish, and higher rates can put pressure on the valuations that have been carrying this market.
Another thing that stands out is how much of the S&P 500âs strength has been concentrated in a small group of mega-cap names. If those leaders start losing momentum, the broader index could feel it pretty quickly.
Weâve seen sharp drawdowns before:
2018 â around -19%
2022 â around -24%
That doesnât mean history has to repeat, but itâs worth keeping in mind if the current weakness turns into something larger.
For now, the level Iâm watching is around 7,660.
If that breaks decisively, the downside could open toward 6,000.
The key question is whether this is just a pullback â or the start of a much deeper repricing.
A lot of traders may see the current weakness as nothing more than a normal pullback.
Iâm not convinced itâs that simple.
Inflation is picking up again, the Fed is sounding more hawkish, and higher rates can put pressure on the valuations that have been carrying this market.
Another thing that stands out is how much of the S&P 500âs strength has been concentrated in a small group of mega-cap names. If those leaders start losing momentum, the broader index could feel it pretty quickly.
Weâve seen sharp drawdowns before:
2018 â around -19%
2022 â around -24%
That doesnât mean history has to repeat, but itâs worth keeping in mind if the current weakness turns into something larger.
For now, the level Iâm watching is around 7,660.
If that breaks decisively, the downside could open toward 6,000.
The key question is whether this is just a pullback â or the start of a much deeper repricing.