The mind resets to the high-water mark
$SPX set an all-time high on Thursday. Today it’s red and the tone has already changed.
Worth noticing what actually changed. Not the businesses. The reference point. The mind resets to the high-water mark almost immediately, so a normal down day near the top registers as losing money you never booked. And the narratives begin: rates, war, etc. Did they not matter last week?
This is where conviction gets tested. Not in a crash. In the quiet red day that invites you to renegotiate a plan you wrote when the market was closed.
If your thesis is different today than it was Friday, price moved you, not information. Conviction that needs a green screen was never conviction.
Nothing changes sentiment like price.
