{"id":20122,"date":"2022-09-22T07:30:20","date_gmt":"2022-09-22T11:30:20","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=20122"},"modified":"2022-09-22T07:30:20","modified_gmt":"2022-09-22T11:30:20","slug":"what-this-zone-tells-us-about-the-markets","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/what-this-zone-tells-us-about-the-markets\/","title":{"rendered":"What This Zone Tells Us About the Markets"},"content":{"rendered":"

On September 5, I provided my latest update on the S&P 500<\/a>.<\/p>\n

I gave my readers a two-way forecast.<\/p>\n

    \n
  1. \n

    I called for a rally that would meet Jeff Clark’s short-term target of 4150-4200.<\/p>\n<\/li>\n

  2. \n

    Then, we would go on to give back those gains.<\/p>\n<\/li>\n<\/ol>\n

    Here’s how that forecast played out…<\/p>\n

    First, the S&P 500 futures went on to hit 4158 during overnight trading before reversing sharply.<\/p>\n

    Then, the market gave back the entirety of those gains – shedding 330 points in the process.<\/p>\n

    That’s some wild trading. However, we’re not done with the volatility just yet.<\/p>\n

    Back then, I also wrote that the market is likely to continue whipsawing traders back and forth with big moves in either direction.<\/p>\n

    And now, we haven’t finished selling off in the S&P 500.<\/p>\n

    To see what I mean, check out this chart of the S&P 500…<\/p>\n

    \"Chart\"<\/div>\n

    This chart is an example of a timeless concept involving support and resistance.<\/p>\n

    When a floor in a market gives way (support), prices tend to treat it as a ceiling (resistance) in the future.<\/p>\n

    The opposite is also true. When the market breaks through a ceiling (resistance), it’ll treat it as a floor (support) in the future.<\/p>\n

    I call these areas “zones.” They’re different from key levels, which is a specific<\/em> price point. But a zone is a general<\/em> area.<\/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

    You can see how this concept worked during the last rally in the S&P 500. Prices ran all the way up to 4158, which is where the market sold off back in June (top blue line).<\/p>\n

    We’re now trading just below a prior zone (middle blue line).<\/p>\n

    The market broke out of this zone back in July and has now come back to see if that same zone is now a viable floor.<\/p>\n

    But instead of finding support on this floor, the market crashed right through it. That tells me that sellers are still firmly in control of the price action.<\/p>\n

    So, whenever the market is trading at an important zone, I pay attention.<\/p>\n

    It doesn’t mean that there’s always going to be a trade, but they often generate reliable signals.<\/p>\n

    The most likely move for the market is going to be to test the next floor.<\/p>\n

    That zone was established when the market bottomed out at 3676 back in June (lower blue line).<\/p>\n

    If sellers can bring prices back to that low, then we must wait and see if the market is ready to bounce once more.<\/p>\n

    Stay tuned for next week’s update.<\/p>\n

    Happy trading,<\/p>\n

    Imre Gams
    Analyst, Market Minute<\/em><\/p>\n

    <\/p>\n

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

    Where do you think the market is heading after yesterday\u2019s Fed announcement?<\/p>\n

    Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

    <\/p>\n","protected":false},"excerpt":{"rendered":"

    This tells me that sellers are still firmly in control of the price action\u2026<\/p>\n","protected":false},"author":49,"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":[76],"newsletter-type":[],"ticker":[],"class_list":["post-20122","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-imre-gams"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20122","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\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=20122"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/20122\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=20122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=20122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=20122"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=20122"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=20122"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=20122"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=20122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}