This phrase has been appearing with such high frequency recently, fully reflecting the volatility and risk in the market at these elevated levels. Yesterday was a Big Day, there's so much to talk about.
I suspect many people couldn’t figure out why the market was falling yesterday. Looking back from the result, there are several reasons: geopolitical factors, concerns over the Federal Reserve's independence, and the spreading panic over AI replacing software (amidst all the heated discussions on AI, whether or not to cut interest rates became almost irrelevant).
From the perspective of the broader market structure, the Nasdaq saw a significant pullback yesterday, but the S&P 500 didn't retreat as much, with 75% of stocks closing in the red, while 16% hit new 52-week highs. Meanwhile, the Dow ended higher, and currently, there are no obvious signs of panic or capitulation selling. Similar to the sell-off triggered by Deepseek's surprise debut last January, yesterday felt like a compression of tail risks.
On the charts, the S&P 500’s MA 60 support remains valid, but if it drops a bit further, it could trigger CTA selling, causing a chain reaction. The market has been extremely jittery lately, and any slight disturbance could lead to panic-driven stampedes. The Nasdaq fared worse, breaking down in the short term, though it still shows some support in the long run.But a deeper correction cannot be ruled out.In this scenario, implementing short-term hedges for protection, especially for those heavily weighted in tech holdings...
