Expects more volatility because markets started with high valuations and earnings expectations, leaving little cushion for bad news. Distinguishes between deeper growth scares and shorter positioning/sentiment resets like recent correction.

Two key things to watch: market leadership and intermarket analysis. High yield spreads remaining contained suggests credit market not concerned about growth. Equal weight consumer discretionary vs. staples ratio softening materially, which correlates with household consumption.

Labor and spending data are lagging indicators. Consumption driven by wealthy households via wealth effect from strong stock/housing markets, not jobs market.

Software trades near-term are short-term only. Sector deeply oversold, bounced briefly but rolled over again yesterday, suggesting continued selling pressure.