The Market Just Broke Key Levels: Here’s What Happens Next

We can all agree that this wasn’t the kind of week investors enjoy.

The VIX moved higher, and the S&P 500 slipped below its 200-day Simple Moving Average (SMA) and November low. Treasury yields have spiked higher and, under the surface, market breadth has weakened. If you look at the Equities panel in the Market Summary page, you’ll notice that about half the U.S. indexes are now trading below their 200-day SMA. That’s a big shift from what we saw a week ago.

All this may not paint the most cheerful picture heading into the weekend, but it offers an important reminder that the market doesn’t go up forever. Some of you may have already taken a more defensive stance by trimming your positions and going into cash. In this type of environment, that could be a wise move. At some point, the market will find its footing and turn higher again, but we’re just not seeing those signs yet.

In my recent article When Headlines Drive the Stock Market, Let Charts Lead the Way, I shared a few key charts I’m watching closely for signs of capitulation. In this week’s collection of articles, you’ll also find insights on what mega-cap stock charts are telling us, how to spot weakening breadth and momentum, what sentiment indicators are suggesting, and even an options strategy you could apply when stocks are trading lower.

If there’s one thing we learnt this week, it's to keep an eye on the charts. They tend to reveal shifts in direction well before the headlines do.

From the price action we’ve seen in the last several weeks, it’s worth noting that investors seem cautious heading into weekends. Many choose to reduce their equity exposure on Fridays, likely due to ongoing geopolitical concerns. The news of additional U.S. troop deployments to the Middle East only adds to that uncertainty. On top of that, this past Friday was quadruple-witching, a typically high-volume, high volatility event as multiple derivative contracts expire.

We also heard from several central banks this past week, all reinforcing a similar message: Inflation remains a concern. After hearing Chairman Powell’s remarks, the market is no longer expecting rate cuts in 2026, which is reflected in bond yields. The 10-Year US Treasury Yield Index ($TNX) climbed to around 4.39%, the highest level we’ve seen this year. For yields to ease, we’ll need to see greater stability on the global stage.

Precious metals are also getting slammed, and cryptocurrencies haven’t regained momentum after their steep fall that started in October. There aren’t many clear areas of strength right now, except in energy stocks, some of which are looking toppy.

But here’s the silver lining. A declining stock market can be a time to step back, observe, and be prepared so that when conditions improve, you’ll be ready to dip your toes back in.

And while you’re waiting for the market to settle down, it may be worth investing your time in attending next week’s EarningsBeats free webinar.

Join us next week

Tom Bowley, Chief Market Strategist at EarningsBeats.com, will walk through recent market activity and highlight the signals to watch so you can be better prepared for the next meaningful move.

What: Is Wall Street Manipulating This Market?

When: Tuesday, March 24, 2026, at 5:30 PM ET.

👉 Be sure to register for the free webinar.

Have a great weekend and we'll see you back here next week.