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Last week the S&P 500 broke below its bull market trendline.

This is definitely cause for concern. Since mid-May 2025, this trendline has served as critical support for stocks. So, the fact that the market actually broke this line (even temporarily) is a warning sign that things are deteriorating for this bull market.

Indeed, while the S&P 500 managed to eke out several new all-time highs in October, “under the hood” breadth has gone nowhere for over two months. This signals that this bull market is being driven by fewer and fewer companies.

Put simply, stocks are flashing multiple warning signs that the bull market is in serious danger. 

In this context, the #1 questionfor investors is whether the bull market is about to end and it’s time to “sell the farm”… or if this is another opportunity to “buy the dip”.

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