In our previous post, we clearly highlighted the developing downtrend in the US equity markets. Well in advance, we had indicated that the S&P 500 could correct toward the 6500 level. Based on this outlook, we initiated short positions in S&P 500 (Cash) at 7050, Dow (Cash) at 50000, Russell (Cash) at 2700, and Nasdaq (Futures) at 26200.
Today’s market action has largely validated this view. The S&P 500 declined to a low of 6588, Nasdaq touched 23998, the Dow fell below 46365, and the Russell index dropped to around 2422. Even last Friday, we advised traders to consider fresh short positions at higher levels.
We had projected a potential bottom window around 20–25 March 2026. Our downside targets were 6500 for the S&P 500 and 23500 for the Nasdaq, and the markets are now trading very close to those levels. The S&P 500 could find support near 6200 before stabilizing, and over the longer term we anticipate a recovery that may take the index back toward the 7100 region by October.
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