Tripped on the 200

Matthew Allgood |

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The S&P 500 has fallen below its 200-day moving average—a level closely watched as a potential turning point for market momentum. While this pullback has brought the index near correction territory, it’s important to remember that 10% drawdowns are common in most years, even in strong uptrends. Similar breakdowns have sometimes led to deeper declines, while others have seen swift recoveries. 

No single indicator can predict the future, but moments like these are why we utilize our RiskFirst® approach to disciplined, risk-management.  This allows us all to stay focused on long-term goals rather than reacting emotionally to short-term market moves.

Tripped on the 200

A graph showing the price of a stock market AI-generated content may be incorrect.

Source: Bloomberg, Redwood. Data as of 3/11/2025. Date Range 3/10/2020 – 3/11/2025. For illustration purposes only.​

Regards,

Allgood Financial

Disclosure: This piece is for informational purposes only and contains opinions of Redwood that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no representation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss. Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above. Diversification of asset class is not a guarantee against loss. RiskFirst® is a registered trademark of Redwood Investment Management, LLC.

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