It was the first  time that S&P 500 closed below its 200-day moving average since it came out of the deep pandemic correction territory.  Now the momentum on the weekly charts is clearly geared down uniformly on all major indices.  It has only been two weeks correction for the S&P 500 even though the NASDAQ has been in correction since November 2021.

So far the S&P 500 has corrected about 8% and bumped into its 200-day moving average.  This 200-day moving average could be providing support in the short term.  The market could be trading around this level for some time before the next leg down.

We see the S&P 500 to correct around 20% from peak to trough to meet the 38% retracement of the 4-year mid cycle low in March 2020 to mid cycle high in Jan 2022.

The potential mid cycle low could be around 3815 sometime in Feb-Mar time frame.  We have March 14th as a turning point.  So before now and March, you should sell any rallies.  The dust is not settled until March at least.

We will send out intraday emails when the trades on the short side are available.

Again, this is only a correction, not a start of long bear market.  Stay calm.