The stock market is on very thin ice.
The speed of this decline is historic. As Tom Lee notes, only five times in history has the stock market lost 10% this rapidly.
That’s not the bad news. The bad news is that stocks are struggling to bounce back from this decline. In truth, a 10% decline is typically a once-a-year occurrence for stocks. A 10% decline in which the S&P 500 takes out its 200-DSMA and FAILS to recover it is a BIG DEAL, however.
You don’t need to be an expert at investing to recognize how bad this chart looks.
What’s REALLY disturbing is the fact the S&P 500 was rejected so strongly in its attempts to reclaim its uptrend. Unlike the sharp decline in August 2024 when stocks bounced back rapidly reclaiming their uptrend, this time around the S&P 500 was rejected HARD.
See for yourself.
This is BAD news. Had stocks simply struggled at that line for a number of days, it would mean buying power was building. That didn’t happen. Instead the S&P 500 challenged its former uptrend for just a single day before rolling over and plunging hard again.
This means the upwards momentum is gone. Stocks are now on very thin ice.
Indeed, our proprietary Crash Trigger is now on red alert. This trigger went off before the 1987 Crash, the Tech Crash, and the 2008 Great Financial Crisis.
We detail this trigger, how it works, and what it’s saying about the market today in a Special Investment Report titled How to Predict a Crash.
Normally this report is only available to our paying clients, but in light of the market’s downturn, we are making just 99 copies available to the general public.
To pick up one of the remaining copies…
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research
