{"id":23531,"date":"2025-03-20T07:30:00","date_gmt":"2025-03-20T11:30:00","guid":{"rendered":"https:\/\/jeffclarktrader.com\/market-minute\/?p=23531"},"modified":"2025-08-22T07:35:22","modified_gmt":"2025-08-22T11:35:22","slug":"were-looking-at-a-rebound-rally-for-stocks","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/were-looking-at-a-rebound-rally-for-stocks\/","title":{"rendered":"We\u2019re Looking at a Rebound Rally for Stocks"},"content":{"rendered":"
\n

Managing Editor\u2019s Note: <\/strong>Jeff Clark and TradeSmith – premier provider of fintech software and financial newsletter behemoth – have teamed up.\u00a0\u00a0<\/p>\n

It\u2019s a perfect match, because at the core of both Jeff\u2019s and TradeSmith\u2019s mission is a very simple philosophy: dedication to helping everyday investors navigate volatile periods like we\u2019re in now, so you can profit on both the ups and downs in markets with the least amount of risk.\u00a0<\/p>\n

And today, we\u2019re hearing from our brand-new contributing editor Mike Burnick for the first time.\u00a0\u00a0<\/p>\n

Mike has over 30 years in the investment and financial services industry – from operating as a stockbroker, trader, and research analyst, to running a mutual fund as a registered investment advisor and portfolio manager, to being Research Director for the Sovereign Society, specializing in global ETF and options investing.\u00a0<\/p>\n

And he\u2019s been senior analyst at TradeSmith for three years, running Constant Cash Flow, Infinite Income Loop, <\/em>and Inside TradeSmith.\u00a0<\/em>\u00a0<\/p>\n

You\u2019ll now be hearing from Mike weekly, on Thursdays in TradeSmith\u2019s Market Minute.<\/em>\u00a0\u00a0<\/p>\n

Mike believes that a consistent and reliable method for generating income, even when times are tough, is the true key to financial freedom and living a carefree life of leisure.\u00a0<\/p>\n

Jeff shares this belief. And the first time Jeff and Mike sat down together, it was clear that their trading, investing, and financial outlooks meshed beautifully.\u00a0\u00a0<\/p>\n

Without further ado, here\u2019s Mike…\u00a0<\/p>\n<\/div>\n

We\u2019re Looking at a Rebound Rally for Stocks<\/h2>\n

BY MIKE BURNICK, CONTRIBUTING EDITOR, MARKET MINUTE<\/em>\u00a0<\/p>\n

The stock market has been on a one-way ride to the downside over the past month, but now we\u2019re finally seeing signs pointing to a rebound rally.\u00a0<\/p>\n

The S&P 500 Index closed lower in six out of the past seven weeks. This kind of severe selling stampede is unusual and was triggered mainly by fear of the unknown.\u00a0<\/p>\n

Economic policy uncertainty spiked to levels not seen since the 2020 pandemic.\u00a0\u00a0<\/p>\n\n\n

\"\"<\/figure>\n\n\n

Back then, just like now, conflicting signals about trade policies, include tariff threats against key trading partners, triggered high levels of unpredictability in the economy and roiled financial markets.\u00a0<\/p>\n

In fact, uncertainty today is well above the highs recorded during Trump\u2019s first term in the White House when trade was also a hotly debated topic.\u00a0\u00a0<\/p>\n

The Market Doesn\u2019t Like Uncertainty<\/h2>\n

Stocks don\u2019t like uncertainty… and that\u2019s exactly why it seems like a trapdoor opened under stock prices.\u00a0\u00a0<\/p>\n

But today, investor fear is so thick you can cut it with a knife… and that\u2019s often when market lows form. The market\u2019s so-called fear gauge, the CBOE Volatility Index (VIX) just hit levels that, just like Jeff said in a recent essay, have provided reliable buy signals for stocks<\/a>.\u00a0<\/p>\n

Meanwhile, investor sentiment by several measures fell to extreme bearish levels. Data from Investors Intelligence shows the most bearishness since the 2022 bear market.\u00a0\u00a0<\/p>\n

Both Jeff and I believe sentiment indicators like this tend to be reliable contrary indicators (just check out Jeff\u2019s recently unveiled \u201cwife indicator<\/a>\u201d!\u00a0\u00a0<\/p>\n

In other words, everyone is so bearish there\u2019s nobody left to sell… which is bullish.\u00a0<\/p>\n

And sure enough, buyers finally stepped into the market in recent days and completely overwhelmed the sellers.\u00a0<\/p>\n\n\n

\"\"<\/figure>\n\n\n

In last Friday\u2019s trading, and again Monday, the S&P 500 Index experienced back-to-back 90% upside days. That\u2019s when 90% of index stocks close higher for the day.\u00a0\u00a0<\/p>\n

Historically, when overwhelming positive breadth like this happens on consecutive days with the S&P 500 at six-month lows, stocks have always<\/u><\/em> been higher two months later, with the S&P posting average gains of 6.2% in the process, according to SentimenTrader<\/em><\/a> data.\u00a0<\/p>\n

Zoom out to 12 months later and the S&P 500 has been higher 88% of the time with gains of nearly 12% on average.\u00a0<\/p>\n

Burnick\u2019s Bottom Line<\/em><\/strong>: Stocks have really taken a beating over the past month, but with history as a guide, the swiftness of the decline may soon be mirrored by a sharp market rebound rally. Both negative sentiment and recent positive stock market breadth point to higher prices ahead.<\/em>\u00a0<\/p>\n

Good investing,<\/p>\n

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

Mike Burnick
Contributing Editor, Market Minute<\/em><\/p>\n

READER MAILBAG<\/u><\/strong>\u00a0<\/h2>\n

Like Jeff and Mike, do you think the market will be higher two months from now? What trading moves are you making? Let us know at feedback@jeffclarktrader.com<\/a>. \u00a0<\/p>\n

\n

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

Have you checked out Jeff\u2019s 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<\/div>","protected":false},"excerpt":{"rendered":"

When overwhelming positive breadth like this happens on consecutive days with the S&P 500 at six-month lows, stocks have always been higher two months later.<\/p>\n","protected":false},"author":100,"featured_media":0,"comment_status":"closed","ping_status":"0","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[155],"newsletter-type":[],"ticker":[],"class_list":["post-23531","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-mike-burnick"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23531","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\/100"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=23531"}],"version-history":[{"count":3,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23531\/revisions"}],"predecessor-version":[{"id":24968,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23531\/revisions\/24968"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=23531"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=23531"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=23531"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=23531"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=23531"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=23531"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=23531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}