S&P 500 faces unprecedented warnings from both stock and bond markets, signaling risks not seen since the dot-com era. The index has surged 80% over three years, but current conditions suggest potential reversals ahead.

Credit spreads between corporate bonds and Treasuries tightened to 71 basis points, the tightest since 1998. Meanwhile, the S&P 500's CAPE ratio reached 40.1 in January, matching levels from the dot-com crash of 2000 and indicating extreme market valuation.

Historical data shows CAPE ratios above 40 typically precede market declines of 3% within a year, potentially 30% over three years. Investors should review portfolios for holdings vulnerable to steep drawdowns and focus only on highest-conviction opportunities.