On February 7, 2025 it was noted that the S&P500 was expected to follow the 1980 pattern. Since January 29, 2026 the S&P500 has declined 8.6%. Volume has remained relatively constant while the CBOE Options Equity Put/Call Ratio and sentiment indicators point to a very short term low. If this is the case, it would appear the S&P500 is following a pattern similar to 2011. Over the next several days, trading activity or geopolitical events should provide clarity to the direction of markets. A nominal decline of 17% is still expected.
Note that this information is for educational purposes only and not a recommendation.
Stock charts courtesy of StockCharts.com.
