Stocks are 'about to fall off a cliff' due to market leadership, says Strategas' Chris Verrone

Market Seasonality & Trends - Strategus notes that while September is historically a weak month, a strong prevailing market trend can mitigate this [2][3] - The market's leadership, with banks and discretionary sectors performing well, suggests limited downside risk [4] - Global markets are generally performing well, further reducing bearish sentiment [4][5] Economic Indicators & Tariffs - The market indicates that the impact of tariffs is not significant, supported by strong consumer discretionary stocks [7] - Credit conditions have not deteriorated, and discretionary stocks are outperforming staples, suggesting no imminent economic weakening [8] - Countries in the "crosshairs" of trade tensions, such as China, the EU, and Japan, have not shown significant weakness [9] Bond Yields & Bank Stocks - Despite breakouts in bond yields across multiple countries (German, French, UK, Japanese, and US 30-year bonds), bank stocks are not responding negatively [9][10] - Japan's NIK index continues to perform well despite movements in Japanese Government Bond (JGB) yields, indicating underlying strength [10] Potential Market Correction - A period of "chop" or consolidation is considered reasonable, especially given pullbacks in stocks like Nvidia and Broadcom [4][5] - A worst-case consolidation scenario is estimated around 6150-6200 [5]