The chart of $SPX shows that bullish buying power is weakening, as each consecutive high volume rally has decreased in size. Additionally, support and resistance are forming a naturally descending channel. As buying pressure dies out, only selling will be left, which could cause enormous declines in overall prices.
In terms of macroeconomics and fundamentals,
Lately, stagflation has been posing a large threat to the economy, which the FED has countered with minor interest rate hikes. In stagflation, inflation rises, which means firms have to charge higher interest rates to break even on real interest rates. As we have been in stagflation and a wave of earnings is coming soon, earnings will likely underperform as cash is spent on interest payment instead of investment and sales. Additionally, the high debt of the US means any increase in FEDERAL interest rates will have a negative impact on the future. Also, Ukraine and Russia are still at war, causing large impacts to the supply of food and oil.
In terms of macroeconomics and fundamentals,
Lately, stagflation has been posing a large threat to the economy, which the FED has countered with minor interest rate hikes. In stagflation, inflation rises, which means firms have to charge higher interest rates to break even on real interest rates. As we have been in stagflation and a wave of earnings is coming soon, earnings will likely underperform as cash is spent on interest payment instead of investment and sales. Additionally, the high debt of the US means any increase in FEDERAL interest rates will have a negative impact on the future. Also, Ukraine and Russia are still at war, causing large impacts to the supply of food and oil.