7/23 Alarm
Alarm #3 for 2026
Out Of Cycle Note
Market Update - July 23, 2026
Yesterday’s note highlighted the fine line the market was riding as it related to the risk-off criteria. Breadth was barely positive, momentum was down, and the S&P 500 was just above its key trend.
Today marks the third alarm for the market in 2026, the prior two occurring in late February and early March. The market declined 8%.
With potential confirmation of the risk-off alarm in tomorrows session, it will be time to make adjustment to position defensively. The Sunday note will outline downside targets that will be considered.