S&P 500: Caution
Eventful but Uneventful. 3/3 Risk Off Criteria
Eventful— but Uneventful
The S&P 500 ended the week flat, while the Nasdaq posted a modest 0.4% gain. At first glance, it might seem like an uneventful week, but it was far from it—especially on Monday, when the S&P 500 saw its first 3% decline in two years, and the volatility index logged its second-largest spike in history.
The key question for market participants now is whether this pullback was just a brief episode or if more downside is ahead. In this week’s note, I’ll review the three correction criteria and highlight critical near-term levels to help assess whether the market outlook leans bearish or bullish.".