Yesterday, the market kicked off the third leg of this correction phase with a sharp move lower. There’s probably a bit more downside ahead. But, we’re nearing the end of this correction.<\/p>\n
Here’s an updated look at the S&P 500 chart I showed you on Wednesday…<\/p>\n
![\"Chart\"](\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202003\/20200306-jmu-01_cxk395.png\")
<\/div>\nIn typical fashion, the second leg – the oversold bounce – rallied the S&P 500 all the way back up to its 9-day exponential moving average<\/a> (EMA) line. That’s where the index met resistance<\/a> and the market started its third leg – a move lower to retest, or dip a bit below – the low of the first leg.<\/p>\n So, the S&P should be headed back down towards 2950. And, yesterday was a good step in that direction.<\/p>\n When the market gets to that level, traders should then take a look at some of the technical indicators we typically follow – like the McClellan Oscillators<\/a>, the Volatility Index<\/a>, and the Bullish Percent Indexes<\/a> – for signs of oversold conditions. We should also look for positive divergence on some of the momentum indicators – like the MACD<\/a>, and RSI<\/a>.<\/p>\n Those indicators will tell us when the decline is nearing an end, and when it’s just about time to buy.<\/p>\n Put your plan together today. Because when the market does finally fall to the point where it’s time to buy, it’s going to feel like the last thing you want to do.<\/p>\n Having a plan ahead of time will help you set the emotions aside and take advantage of the buying opportunity.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n Today we hear from several Jeff Clark Trader <\/em>members about their gains from Jeff’s most recent trade…<\/p>\n Thank you so much, Jeff! I sold my position for more than a 400% gain!<\/p>\n – Deborah<\/strong><\/p>\n<\/blockquote>\n Hi Jeff, I recently signed up for your service… and on my first options trade with your service, I made over a 360% return on my put options. Your advice was spot on. Looking forward to more great advice!<\/p>\n – Brad<\/strong><\/p>\n<\/blockquote>\n Hi Jeff, I closed out on your recent puts for a 627% gain! This made up for the loss on trading the stock the first time around. I’m waiting for another big gain, keep them coming.<\/p>\n – Thomas<\/strong><\/p>\n<\/blockquote>\n And some kind words from a Delta Report<\/em> subscriber…<\/p>\n Hello Jeff, I’ve been following your updates since the beginning of this year, and I’ve enjoyed all of your daily updates, as I’ve learned a lot from how one can see the market – as well as your trade recommendations.<\/p>\n I’ve now decided to follow and start entering your option buys of the calls and puts going forward. Best regards and please keep up the great work as I look forward to continuing learning from you. <\/p>\n![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
<\/p>\nReader Mailbag<\/strong><\/h2>\n
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