More than half of S&P 500 stocks are now in a bear market

The number of S&P 500 members in a bear market exceeded 50% this week. Similar setups to what we're seeing now have preceded somewhat muddled returns in the near term with a more favorable outlook on a medium-term basis. However, if the number of members in a bear market exceeds a critical level in the subsequent months, the perspective turns highly unfavorable.