While the S&P 500 has surged in recent sessions, the index is now flashing a pattern reminiscent of 2008, just before the financial crisis.
A comparison shared by a market analyst using the pseudonym The Great Martis depicted an eerie similarity in the index’s overlay, highlighting a near-identical buildup, peak, and early stages of decline between the two periods.
In a July 19 post on X, the analysis suggested that the S&P 500’s climb into 2025 mirrors the exuberant pre-crash rally of 2008, culminating in a similar sharp peak. If history repeats, the momentum could be a warning sign of a deeper correction ahead.
Adding to the technical warnings, Finbold reported that after the index hit a record high of 6,300, Gareth Soloway, Chief Market Strategist at Verified Investing, cautioned that investors should prepare for a potential downturn.
Warning signs for the S&P 500
He noted that, despite major catalysts, such as Nvidia’s (NASDAQ: NVDA) approval to resume artificial intelligence (AI) chip sales to China, the market reaction has been muted, signaling a fading of bullish momentum.
Soloway described the situation as potentially the “beginning of the end” of the current rally, urging caution as the index nears key resistance levels.
His warning comes amid easing recession fears, buoyed by new U.S. trade deals. However, uncertainty around the looming August 1 tariff deadline keeps risk firmly on the table, even as some on Wall Street maintain a bullish outlook on the S&P 500.
Meanwhile, the index’s recent gains have largely been driven by the tech sector, particularly the AI boom. But a section of Wall Street is sounding the alarm.
As reported by Finbold, analyst Gordon Johnson warned that the AI frenzy echoes the Dot-com bubble, and could collapse within two years.
He argued that actual returns do not support the hype and that mounting failures or an external shock could trigger a sharp market correction.
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