Uh-Oh! One of the Most Bearish Stock Market Signals Just Triggered.

Since the financial crisis, the Dow Jones, S&P 500 and Nasdaq Composite have been largely uninterrupted in their advance, with only two significant drawdowns: a five-week COVID-19 crash in 2020 and a nine-month bear market in 2022. The note highlights prolonged equity-market resilience and implies continued monitoring of investor positioning and valuation risk despite limited-duration historical setbacks.

Analysis

Since the financial crisis, the Dow Jones, S&P 500 and Nasdaq Composite have been largely uninterrupted in their advance, with only two significant drawdowns: a five-week COVID-19 crash in 2020 and a nine-month bear market in 2022. The note highlights prolonged equity-market resilience and implies continued monitoring of investor positioning and valuation risk despite limited-duration historical setbacks.