That trade is looking pretty good today – with the S&P all the way back up to 2884.<\/p>\n
But, after three strong rally days, conditions are starting to get a little stretched. <\/p>\n
The S&P 500 is bumping into resistance. So, traders who bought on Monday should consider selling as we head into the weekend.<\/p>\n
Here’s an updated look at the chart of the S&P 500 along with its various moving averages…<\/p>\n
![\"\"](\"https:\/\/s3.amazonaws.com\/jc-stable\/ee-assets\/channels\/articles\/mm\/201905-mm\/20190517-MM-01.png\")
<\/p>\n
The most concerning part of this picture is that the shorter-term moving averages – the 9-day and 20-day exponential moving averages (EMAs)<\/a> (the red and green lines) are on the verge of crossing below the intermediate-term moving average – the 50-day moving average (MA)<\/a> (the blue line).<\/p>\n The last time we saw this “bearish cross” in the moving averages was back in October, just as the market entered a severe correction phase.<\/p>\n Now… it hasn’t happened yet. And, if the S&P 500 can continue to bounce, then maybe we can avoid a bearish cross in the moving averages, and all the potential heartbreak that goes along with it.<\/p>\n But, if you bought stocks on Monday, in anticipation of an oversold bounce, then why risk it?<\/p>\n The S&P is up more than 3% in just three trading days. That’s a nice gain. Traders should consider taking it and heading into the weekend with a little less stock market exposure.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n P.S. <\/strong>Taking profits instead of waiting to see what happens next is the basis of my trading strategy in the Delta Report<\/em>.<\/a><\/p>\n While a 3% profit in three trading days may not sound like a lot, consistently pulling money off the table is better than getting greedy and losing it all. After all, successful traders know how to reduce risk.<\/p>\n And reducing risk is one of the strategies I use to prepare my subscribers from market hiccups… and even market crashes. You see, market crashes can be down right catastrophic for investors. But for traders, it’s a whole different ballgame…<\/p>\n The next market crash could be a goldmine for traders who use my strategy.<\/p>\n And on Wednesday, May 22 at 8 p.m. ET, I’ll reveal all the details… along with the exact<\/em> day I believe the market will crash. Reserve your spot right here.<\/a><\/p>\n Was there a time you took a profit on a trade, knowing the stock might go higher in the days to come? How did it play out?<\/p>\n![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
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