Fundstrat: US stocks could see 15-20% correction in 2026

According to The Daily Hodl, Mark Newton, head of technical strategy at Fundstrat, has projected that the U.S. stock market could experience a volatile bearish phase in 2026. Newton explained that the midterm election year in a president's four-year term is typically the weakest and that the market has entered a period of fatigue after three consecutive years of gains exceeding 15%. He anticipates that a decline could begin from late February to early March, leading to a 15-20% correction by May or June. This could be followed by a summer rebound and a further correction in the third quarter. Newton also pointed out that recent market sentiment has become overly optimistic and that tech stocks have entered overbought territory, with momentum slowing.