The best way to understand the market is to look at it in various timeframes.
Below is a picture of the S&P since 1982. The shaded areas are official “recessionary” periods. At a weekly level the technical model is saying Sell in all periods. So we start with the overarching long term trend as downward.
The S&P 500 dropped 0.8% last week and ended at 1864.78.
As I noted last week, don’t be surprised if this market rises a bit again before a further drop. Technically it appears to be rolling over, but these things don’t happen overnight.
The advice from the January 17 post is still in effect. As the S&P 500 toys with 1880 (it closed at 1853 today) you should prepare for a material drop if that 1880 level does not hold. By now you should only have a small equity position.
Conservative. Smart. Investing.