US Stock Market Review for March 27th

Today, Israel launched an attack on Iran's industrial facilities, rendering Trump's promise from yesterday to suspend attacks for 10 days void. The US Secretary of State indicated that the war will continue for another 2-4 weeks.

🛢️ The conflict escalates, oil prices surge, with WTI hitting a closing high of 101 since 2022.
🥶 VIX at 31, panic spreads, the S&P and Nasdaq continue to be heavily sold off, performing extremely poorly!
🧐 This also aligns with yesterday's review judgment: [If there is no new news of de-escalation to stimulate the market at tomorrow's open, it's expected to continue being heavily sold off].

📉 Both the S&P and Nasdaq have fallen for 5 consecutive weeks, pulling back 9% and 11% from their highs, respectively.
Since the second half of last year, many people have been reminiscing about the big drop last April, feeling they were too panicked back then and missed the opportunity.
The S&P fell 20% then, it's down 9% now, still half the drop to go! What do you think?
I think most people no longer miss it now; those who sold in panic last year will most likely panic sell again this time. Most retail investors won't see much change in their psychological management.

Regarding pullbacks
It's been shared many times: the S&P basically has one pullback of over 10% every year, and 3-5 pullbacks of 5%-10%. This is still normal.

🐻 Will it fall into a bear market?
A bear market for the S&P requires a drop of over 20%, it's still very early.
It depends on oil prices going forward. If high oil prices persist until May, it might happen, there's at least a month left.
But if oil prices fall back, the day they fall back will be the market bottom!
It's up to you what you do.

Of course, there's also good news 👇

Good news

• The market is closed for the weekend, so it won't fall for the next two days.
• Next Friday is a holiday, so next week it only falls for 4 days.
  Just kidding 🙃 Relax a bit.

Good news
1. There's a chance for US-Iran talks over the weekend. Being able to talk is a good thing.
2. You can really buy cheap stocks now.

🏃 What to do if it falls into a bear market?
If it really falls in, see if an economic recession appears. If it does, cut losses where you should, run fast where you should.