Future Market Pullback Prediction (Market PullbackMarketPullback#Marketpullsback ) [[[2]]] :

Practical analysis based on current data

. Overvalued market assessments (Overvaluation) :-

- Valuation metrics :

- [P/E ratio of the S&P 500] at ~25x (higher than the historical average of ~16x), indicating that stocks are trading at inflated prices compared to earnings.

- [Buffett Indicator (market capitalization/GDP)] exceeds 180%, indicating that the market is overvalued.

- Limited liquidity :

- Continued reduction of central bank balance sheets (such as the Fed, which has reduced its balance sheet by ~$1.3 trillion since 2022) limits the liquidity available for high-risk investments.

. Technical Indicators and Market Volatility (Technical & Volatility) :-

- VIX Index (Fear Index) :

- At low levels (~12 points), reflecting [risk satisfaction] among investors, which is a classic indicator of an impending market correction.

- Historical resistance levels :

- The S&P 500 index approaching the 5,500 point level (strong psychological resistance) without enough momentum may lead to mass sell-offs (profit-taking).