The S&P 500 Index is down more than 2% from its January all-time high of about 6,979... On the surface, that looks like "noise" – a routine dip in a still-intact bull market.

Three Steps to Prepare for a Potential Market Correction By Marc Chaikin, founder, Chaikin Analytics The S&P 500 Index is down about 3% from its January all-time high of about 6,979... On the surface, that looks like "noise" – a routine dip in a still-intact bull market. But the headline number is hiding a tale of two markets that could not be more divergent... On one side, the equal-weighted Invesco S&P 500 Equal Weight Fund (RSP) is up around 3% year to date. This gain has largely come from the financial, energy, industrial, and health care industries. Conversely, the "Magnificent Seven" mega-cap stocks are deep in the red from their 52-week highs. On average, they're down about 17% from those peaks. Keep in mind that the Magnificent Seven collectively represent about one-third of the total weight of the S&P 500. So if these stocks struggle... there's a good chance the S&P 500 does, too. As an old saying on Wall Street goes, "If the troops lead, the generals will follow." The troops have held up for now. But they have increasingly done so without the generals. History tells us this is an unstable arrangement. And unfortunately, that's far from the only headwind investors need to deal with in 2026... Recommended Links: 'Move Your Money by March 16' Former multibillion-dollar pension-fund trader who once turned a $4.6M profit in 24 hours says this wave of volatility is just the beginning... but his No. 1 strategy could help you double your money – over and over again – even if stocks fall from here. Click here to learn more (includes a free stock giveaway). TOMORROW: Red-Alert Warning From Jeff Brown Jeff Brown believes Nvidia is about to trigger a major crash on March 16. In fact, he says it's a "sure thing." During a special event tomorrow, March 12, he's going to reveal why this upcoming crash is a feature of the AI boom – not a bug – why the recent volatility is just the beginning, the name and ticker of a wildly popular AI stock that could crash, the stock that could see huge gains, and more... By tomorrow, click this link to register. A Bumpy 2026 Is Likely Folks, 2026 is a midterm-election year. It's "Year 2" of the four-year presidential cycle. So we can look at history to get an idea of the stock market's annual performance during these years... Unfortunately, recent history shows that the second year of the election cycle tends to be rough for investors. In short, the stock market posted an average decline of roughly 2% during the past six "Year 2s" of the cycle. In other words, if you owned the S&P 500 in 2002, 2006, 2010, 2014, 2018, and 2022... you lost an average of about 2% overall those years. Looking back farther, over 17 election cycles going back to the 1950s, the probability of a correction of 10% or greater in a midterm year is 70%. That's 12 out of those 17 cycles. Even worse, the average intra-year drawdown in midterm election years since the 1950s is 18%. Of course, evolving geopolitical turmoil in the Middle East adds to this correction risk... Consider the effect of the conflict with Iran on oil prices. Before the war erupted, West Texas Intermediate ("WTI") crude oil prices stood at about $67 per barrel. In overnight trading last Sunday, WTI hit more than $100. As of earlier this morning, prices are around $86. That's huge volatility. And the spike puts the Federal Reserve in a bind...  Elevated oil prices threaten to reignite headline inflation – just as a disinflationary trend was taking hold. A jump in inflation would make the Fed less likely to cut interest rates. At the same time, the labor market is showing clear signs of stress. Last Friday, the U.S. Bureau of Labor Statistics ("BLS") report for February showed a loss of 92,000 jobs. A weakening jobs market normally calls for interest-rate cuts. But the effect of surging oil prices on the core inflation rate could tie the Fed's hands. Put simply, historical patterns and the current volatile environment point to big potential for a correction in 2026. Unfortunately, there's not much we can do to prevent a market correction from happening. But we can set up our own portfolios to minimize any losses that come our way... The Power Gauge Helps Protect Your Portfolio From Chaos There are a few steps you can take to prepare for potential downside ahead... First, you can sell down to your individual "sleeping level." Put simply, this means adjusting your portfolio so that even if the worst does happen, you can still sleep soundly at night. You could consider raising cash in your portfolio and tightening your stop losses to protect capital. Never invest more than you're willing to lose, folks. Of course, the Power Gauge will help you figure out which stocks to trim back on and which to keep... It's a good idea to maintain stocks with "bullish" or better grades in industries with strong ratings in the Power Gauge. These stocks represent the "best of the best." In this environment, be careful when adding new positions to your portfolio. Be wary of bottom-fishing – particularly in sectors and subsectors with "bearish" ratings in the Power Gauge. Also, consider holding off on large commitments until the uncertainties clear up. In uncertain times, don't go looking for bargains... Let the bargains come to you. But regardless of whether we see a market correction, there's an important point to keep in mind... Keep a level head. Corrections will happen – even in strong markets. And historically, non-recessionary corrections of 10% to 20% have recovered in an average of just four months. A correction isn't a catastrophe unless you panic-sell at the bottom... or it turns into a bear market. As always, let the Power Gauge be your guiding light through both corrections and bull markets. Good investing, Marc Chaikin Market View Major Indexes and Notable Sectors     # Hld:     Bullish     Neutral     Bearish Dow 30 -0.04% 6 19 5 S&P 500 -0.16% 98 277 124 Nasdaq UNCH 22 47 31 Small Caps -0.1% 413 1074 395 Bonds -1.06% — According to the Chaikin Power Bar, Small Cap stocks remain somewhat more Bullish than Large Cap stocks. Major indexes are mixed. *  *  *  * Sector Tracker Sector movement over the last 5 days Information Technology +1.64% Consumer Discretionary +0.07% Communication -0.49% Utilities -1.08% Energy -1.63% Real Estate -1.78% Financial -2.25% Health Care -2.29% Consumer Staples -2.3% Industrials -3.09% Materials -3.97% *  *  *  * Industry Focus Capital Markets Services 5 46 12 Over the past 6 months, the Capital Markets subsector (KCE) has underperformed the S&P 500 by -13.53%. Its Power Bar ratio, which measures future potential, is Weak, with more Bearish than Bullish stocks. It is currently ranked #15 of 21 subsectors. Indicative Stocks ARES Ares Management Corp CG The Carlyle Group In COIN Coinbase Global, Inc *  *  *  * Top Movers Gainers VRTX +8.31% CIEN +5.91% GLW +5.56% SNDK +5.12% MU +3.54% Losers CNC -15.97% FICO -10.83% APP -7.7% PSKY -7.69% WST -5.74% *  *  *  * Earnings Report Earnings Surprises ORCL Oracle Corporation Q3 $1.79 Beat by $0.10 UNFI United Natural Foods, Inc. Q0 $0.62 Beat by $0.11 AVAV AeroVironment, Inc. Q3 $0.64 Missed by $-0.05 *  *  *  * You have received this e-mail as part of your subscription to PowerFeed. If you no longer want to receive e-mails from PowerFeed, click here. You're receiving this e-mail at katzronnie7@gmail.com. For questions about your account or to speak with customer service, call +1 (877) 697-6783 (U.S.), 9 a.m. - 5 p.m. Eastern time or e-mail info@chaikinanalytics.com. Please note: The law prohibits us from giving personalized financial advice. © 2026 Chaikin Analytics, LLC. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Chaikin Analytics, LLC. 201 King Of Prussia Rd., Suite 650, Radnor, PA 19087. www.chaikinanalytics.com. Any brokers mentioned constitute a partial list of available brokers and is for your information only. Chaikin Analytics, LLC, does not recommend or endorse any brokers, dealers, or investment advisors. 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