Is A Stock Market Correction Now In The Works? (Support Levels To Watch For)

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I’m not going to write much about the Trump Greenland threats going on now that associated with Tuesday’s stock market drop. You can get that anywhere, and I want to make note of the market action and what is really going on with it.

The S&P 500 pulled back sharply on Tuesday and the VIX closed above 20.

There is a good chance that we are starting a quick sharp correction in the S&P 500.

Before I get to that, though, the most important thing I am seeing is what is acting as a safe haven and what is not.

Sure, Bitcoin dumped, no surprise there, but so did US Treasury bonds.

In fact, the yield on the 10-year Treasury bond went up to right under 4.30%.

Back in April, during the Trump “tariff tantrum” stock market drop, Treasury yields went up then too, and once they briefly went over 4.50% Trump backed off on his tariff threats and the stock market rallied.

Trump people put out that it was a master game of his of stock market manipulation on social media all done on purpose to help everyone make money, which was kinda silly, but it is what they were saying back then and their fans believed it, spreading that story on social media.

The important thing, though, is that yields went up AND NOT down when the stock market dropped during that tariff decline.

Bonds trade opposite to their yields so that meant the value of US Treasury bonds dropped during that moment and are doing so at this one too.