Reviewing the last 30-40 years major market crashes were usually accompanied by a jump in rates that were already at high levels. Today's market has had a mini bump up in rates but is far from the high levels. That could mean that negative market (SPY) reactions to bad news could be short-lived. That is unless rates were to continue higher after a market correction.
Let's Review Some Recent Stock Market Corrections
From mid-1981 to mid-1982 the stock market hit a "bear" market. What preceded that were the key ingredients: high and rising rates.
In a matter of a year the 10 year Treasury went from around 10% yields to close to 16% or a 600bp move.
Such a move was too much for the markets to handle. Until rates started coming back down markets could not start moving…