Cautious Outlook Amid Pullback

Major indices faced a noticeable downturn over the past week, pulling back from recent highs. Both the SPY and QQQ broke below key support levels, closing lower for the week. The significant drop on February 12th, accompanied by a sharp spike in the VIX, indicates a rise in market fear. Prices are now testing or trading below important moving averages, suggesting a weakening short-term trend. While the market has not entered a full-blown correction, the momentum has clearly shifted, warranting a cautious approach.

SOURCE: AI

TICKER: SPY