During a recent market talk, I said a correction could start in 2026. It might not look obvious right now.
The S&P 500 closed 2025 at 6,845.5 after briefly hitting 6,945. Analysts all expect the index to rise in 2026, which can make investors feel safe. But Wall Street often tells a different story than what it does behind the scenes.
Growth vs. Value Shift
While many analysts raised their targets, large‑cap growth stocks were being sold off fast. The ratio of large‑cap growth to large‑cap value (IWF:IWD) over the past five years shows a clear turn toward value stocks. This pattern often predicts a drop in the S&P 500.
Wall Street rarely shares its true intentions early. It moves money to safer places while promising bright days ahead – a practice I call “legalized thievery.”
Rising Volatility
The volatility index (VIX) has been above 20 for three months. When VIX stays high, traders often panic and sell quickly. This creates steep price drops before the market finds a new bottom.
Instead of fearing these moves, we can learn to sell when prices are high and buy when they are low.
Important Support Levels
The S&P 500 is approaching a strong support level at 6,538. If the index breaks below that, the next major floor could be around 6,144 – the level that held after the big breakout in February 2025.
It’s better to plan ahead rather than react with strong emotions.
Upcoming Live Discussion
On March 24, I will host a free live stream titled “Is Wall Street Manipulating This Market?” Join the conversation to learn how to protect your money.
Even big banks like JP Morgan have lowered their 2026 S&P 500 outlook from 7,500 to 7,200. Such changes signal that the market may turn lower.
Stay calm, stay informed, and trade wisely.
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