Keith McCullough Warns of a Volatility Regime Shift, Sees Nasdaq Risk Rising

Hedgeye CEO Keith McCullough warns that markets may be entering a new volatility regime as conditions deteriorate.
According to his framework, assets with bearish trade and trend signals move from the “investable” category into the “chop” category. McCullough says the S&P 500 is currently in this phase, while the Nasdaq has already entered the weakest category, with a 9% drawdown.
He warned that the Nasdaq could fall more than 20% by Q2 next year as the market moves deeper into what he calls “Quad 4.”
McCullough also cautioned that repeated rebounds in futures followed by renewed selling may amplify volatility rather than signal market stability.
These are his market projections, not confirmed outcomes. The key warning is that price action may be signaling increasing downside risk.