{"id":18206,"date":"2021-03-01T07:30:52","date_gmt":"2021-03-01T12:30:52","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=18206"},"modified":"2021-03-01T07:30:52","modified_gmt":"2021-03-01T12:30:52","slug":"theres-more-room-to-fall","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/theres-more-room-to-fall\/","title":{"rendered":"There\u2019s More Room To Fall"},"content":{"rendered":"

Investors have done well buying into every small decline in the stock market over the past several months. <\/p>\n

But, it’s too early to buy into last week’s dip.<\/p>\n

Let me explain…<\/p>\n

Stocks got hit hard last week. The S&P 500 lost 2.5%. It’s sitting right on the support<\/a> of its 50-day moving average<\/a> (MA) line. And, many technical indicators are in oversold territory. So, this is a logical place to look for the stock market to bounce.<\/p>\n

But, any bounce from here is likely to be shallow and short-lived. And, once it’s over, the market has further to fall.<\/p>\n

Take a look at this 2-hour chart of the S&P 500…<\/p>\n

\"\"<\/p>\n

Over the past few months, this chart has been forming a bearish<\/a> rising wedge pattern. Last week, the S&P broke to the downside of this pattern. And, it looks to me like there’s a lot more room for it to fall.<\/p>\n

It’s typical, though, on wedge patterns, when it’s first broken and conditions get oversold, the stock bounces back up towards its former support line – which is now resistance<\/a>.<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

So, it’s perfectly reasonable to expect the S&P 500 to bounce a bit this week. Perhaps it can make it back up towards the 3900 level.<\/p>\n

But, this chart looks bearish to me. Any short-term rally is likely to be followed by a more significant decline. At a minimum, the index is likely headed to the January low near 3700. And, quite possibly, we could see a move down to 3550 before the selling pressure finally washes out.<\/p>\n

So, don’t get sucked in on any rally attempt early this week. It’s tempting to buy into last week’s decline. “Buying the dip” has been a successful strategy for the past several months. But, it may not work so well this time.<\/p>\n

The market has further to fall.<\/p>\n

Best regards and good trading,<\/p>\n

<\/p>\n

Jeff Clark<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

In today\u2019s mailbag, Delta Report<\/em> member Bill shares his thoughts on bitcoin\u2026<\/p>\n

\n

\nHi Jeff, I love your clear-headed approach on all your commentary. With all the \u201chelicopter money\u201d now, and more to come, gold is the ultimate protection. Bitcoin is a great idea, but who knows how that\u2019s going to work out when we go to a digital currency. Please keep up the good work you do. I certainly profit monetarily and intellectually. Thanks again. <\/p>\n

– Bill<\/strong><\/p>\n<\/blockquote>\n

Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming \u2013 and send us any questions \u2013 at feedback@jeffclarktrader.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Hold off on this dip…<\/p>\n","protected":false},"author":25,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-18206","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/18206","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=18206"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/18206\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=18206"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=18206"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=18206"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=18206"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=18206"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=18206"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=18206"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}