{"id":21742,"date":"2024-04-22T07:30:46","date_gmt":"2024-04-22T11:30:46","guid":{"rendered":""},"modified":"2024-04-22T07:30:46","modified_gmt":"2024-04-22T11:30:46","slug":"how-quickly-things-change","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/how-quickly-things-change\/","title":{"rendered":"How Quickly Things Change"},"content":{"rendered":"

We should be looking for bearish trades in the stock market…<\/p>\n

At least that’s what my mechanical scoring system<\/a> says.<\/p>\n

On Monday, April 15, the S&P 500 (SPX) broke below two key moving averages on the daily timeframe.<\/p>\n

These two moving averages are the 20- and 50-period. Together, they can give us important clues about the likely direction of the market.<\/p>\n

Here’s a quick recap of how this scoring system works from when I first brought it to you<\/a>:<\/p>\n

\n

The scorecard can have a maximum rating of +3 and a minimum rating of -3.<\/p>\n

A +3 rating is ultra-bullish. +2 would be strongly bullish. +1 means the market is mildly bullish.<\/p>\n

A score of 0, of course, would mean we are neutral.<\/p>\n

And on the other side of the spectrum, -3 means we are ultra-bearish. -2 would be strongly bearish and -1 means the market is mildly bearish.<\/p>\n<\/blockquote>\n

Right now, the market is giving us a score of -2.<\/p>\n

That’s because the market is currently trading below both moving averages. If the slope of the moving averages were to turn negative, then we’d have a maximum bearish score of -3.<\/p>\n

This a complete and total U-turn from the maximum bullish score of +3 we had at the beginning of the month.<\/p>\n

You can check out an updated chart of the SPX with the 20- and 50-period moving averages below so you can see what I mean.<\/p>\n

<\/p>\n

\"Image\"<\/p>\n

As you can see, the SPX has broken below both those moving averages.<\/p>\n

But crucially, the slope of those averages remains neutral. At least for now…<\/p>\n

If the market continues to break down hard, then we’ll get a score of -3. According to the system, that means traders should be playing the downside in the stock market.<\/p>\n

Now, it’s important to note that just because we have a bearish score, it doesn’t mean that traders should rush into bearish bets immediately.<\/p>\n

<\/p>\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<\/p><\/div>\n<\/div>\n

<\/p>\n

As Jeff noted on Friday<\/a>, the market is currently oversold and likely to have a short-term bounce.<\/p>\n

So this could be the makings of a potentially great two-way trade. Aggressive traders could look to buy the market and if the bounce looks to be running out of steam, sell the market on its way back down.<\/p>\n

Happy trading,<\/p>\n

\"Signature\"<\/p>\n

Imre Gams
Analyst, Market Minute <\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

We should be looking for bearish trades in the stock market\u2026<\/p>\n","protected":false},"author":55,"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-21742","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\/21742","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\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21742"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21742\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21742"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21742"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21742"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21742"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21742"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}