S&P 500 and Nasdaq Retreat from Key Levels as Market Weakness Spreads
The S&P 500 extended its decline from the October 28 record, shedding 3.2% in its sharpest pullback since the February-April slump. The index closed below its 50-day moving average for the first time in 139 sessions, marking the end of the second-longest streak this century. Traders watched as it breached the 6,725 level identified by Goldman Sachs' Lee Coppersmith—a threshold that could trigger systematic selling from trend-following algorithms.
Market breadth deteriorated significantly, with Potomac Fund Management's Dan Russo noting "a lot of damage happening under the surface." The Nasdaq Composite flashed warning signs as more components hit 52-week lows than highs. "It should be now: a correction is occurring," said 22V Research's John Roque, who advised defensive positioning amid growing technical damage.
