S&P 500 Plunge & War Trends: Is This the Historic Setup for the Next Major Rally?

A historic market warning is flashing as the S&P 500 hits new lows amid escalating US-Iran tensions, triggering a potential 10% correction. This evolving conflict is mirroring a seasoned war trend that has historically rebuilt markets from the ground up, presenting what analysts call a critical 'dip-before-surge' opportunity for investors eyeing a return to all-time highs.

S&P 500 War Upheavals Or a Blessing in Disguise?

Global markets are currently bleeding dry, with major Asian markets opening to record lows amid the ongoing US-Iran conflict. With the US threatening to obliterate Iranian power plants and waterways, this conflict has now taken a crucial shape. This development is weighing on global markets, driving major volatility, as major Asian indexes have now dipped to mirror volatility prevalent in the market. Asian markets are panicking as prolonged closure of the Strait of Hormuz may elevate their energy crisis, making the situation more grave in every way.

BREAKING: South Korea’s stock market falls over -6% on the day as Asian markets react to the worsening energy crisis. pic.twitter.com/9iDNYTwxsi

However, historic market setups tell a different story. Per the latest post by the Kobeissi Letter, the S&P 500 is now down 5% entering into its 15th day of volatility. Historical timelines show how markets often react better post the 15th day during heavy wars, with the average recovery timelines scheduled to kickstart soon.

Is the market setting up for a rally?

The S&P 500 is down -5% since the Iran War started, now 15 trading days into the sell-off.

In previous geopolitical conflicts, US stocks bottomed around day 15 on average, based on over 30 major geopolitical shocks since 1939.

The current… pic.twitter.com/QN3RI9at6W

Such a developer may, in turn, deliver a buying opportunity to investors, giving them a chance to explore discounted stock prices.

Prolonged Closure of Strait Is Impacting Global Markets

Per a new KL post, with the extended closure of SoH and Trump issuing a new warning to obliterate Iran’s power plants, the markets have started to react to this growing pressure. The S&P 500 at present is down 0.7%, with Nasdaq and Dow Jones reporting 0.7% and 0.6%, respectively.

BREAKING: US stock market futures fall at the open as markets react to President Trump's "48 hour deadline" for Iran to open the Strait of Hormuz:

1. S&P 500: -0.7%
2. Nasdaq 100: -0.7%
3. Dow Jones: -0.6%
4. WTI Crude: +2.0%
5. Brent: +1.5%
6. Gold: -2.5%

President Trump's…