Yield curve is very close to being flat. 5% mortgage rates is putting pressure on housing prices. Housing stocks are down on average 40% from highs and once again consumers are over leveraged. This is the “perfect storm” with very high probability of hitting. I believe this is what is causing the current sell off and will proliferate. Lower end of the range you speak about in my opinion is 2500-2600 so plenty of downside from here.
An inversion of the yield curve generally predates a bear market. We are not there yet. 5% mortgage rates *might* help to bring housing valuations back to earth but again, 5% is literally the old easy credit. This isn't exactly scary stuff. Consumers being over-leveraged is nothing new. Honestly, the market is still blowing off the Fed. This isn't so much a sell off as a consolidation. Large traders are enjoying the range and once we base, we're going back up just as quick as we came down. I don't see any actual catalysts to inspire a market breakdown... yet. Just a bunch of panicky investors.
Congratulation for the 100 points anniversary of your stop loss!!! And children, this is how a 150 points loser becomes a 250 points loser...