The S&P Has Entered Its First Confirmed Downtrend Since 2022

The S&P 500 Has Entered Its First Confirmed Downtrend Since 2022

And if you’re still betting on last year’s winners, you may already be behind.

In this market update, we break down why our market cycle / trend-following strategy is closing U.S. equity exposure, even though the current downturn looks familiar.

Key shifts to note:

1. Same pattern, different context. The 2025 decline came after fragility — unlike 2024’s post-strength correction.

   1. In this March 2025 market update, we explore how two identical S&P 500 declines — both rapid 10% pullbacks — led to opposite actions in our portfolio.

      Here’s why:

      1. 2024's decline followed strength. We held exposure in August because the setup was robust — and it paid off.

      2. 2025's decline followed weakness. In March, our system cut U.S. equity exposure due to early warning signs.

      3. This is process, not emotion. We're not trying to predict — we adapt to the evolving market cycle using objective signals.

2. Rotation is real. Value and dividend stocks are leading, while growth and tech are fading fast.

3. Tariffs and retail pain are coming. With car prices set to rise $10,000 due to new 25% import duties, discretionary demand may fall faster — impacting consumption, inflation, and momentum.

This is about adaptability, not guesswork.

Are you staying responsive to cycle signals — or stuck in yesterday’s momentum?

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Disclaimer

This post is for informational purposes only. The information contained in this Report is not legal, tax, or investment advice. The Wall Street Insider Report and Zurique Capital Research do not endorse or recommend any investments and assume no liability for any consequence relating directly or indirectly to any action or inaction taken based on the information contained in this article.

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About Zurique Capital Research

Zurique Capital Research is a global provider of independent investment research, solutions and tools. Founded in 2018, Zurique Capital helps clients around the world make systematic investment decisions. Our experienced strategists and analysts use Market Cycles strategies with trend following overlay, the Alpha Hedge Algorithm, charts, proprietary indicators and weight-of-the-evidence methodology to help clients see the signals and invest with confidence. Zurique Capital is headquartered in Orlando, Florida, with offices in New York and Recife, Brazil.

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