Since the 2020 Covid crash S&P 500 (SPX) bear markets have gotten progressively smaller.
The monthly SPX chart courtesy of Trading View reveals a fascinating phenomenon.
Durning the 2020 Covid crash SPX declined 35.4%.
The 2022 bear market declined 27.5%.
The 2025 bear market fell 21.3%.
The 2026 decline was only 9.8%.
The bulls have learned the lesson – “buy the dip”.
If the current June 2026 decline continues, a move below SPX 6,874 could be a very important bearish signal. The 6,874 level is approximately a 9.8% drop from the June 2026 all-time high.
A break below the rising trendline connecting the 2025 and 2026 bottoms could be an additional bearish signal.
A move below 6,874 implies increasing fear, opening the door for a much larger drop than just 9.8%.
Four Dimension Trading 