{"id":23937,"date":"2025-05-09T07:30:00","date_gmt":"2025-05-09T11:30:00","guid":{"rendered":"https:\/\/jeffclarktrader.com\/market-minute\/?p=23937"},"modified":"2025-08-22T09:14:58","modified_gmt":"2025-08-22T13:14:58","slug":"were-heading-into-a-decline-phase","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/were-heading-into-a-decline-phase\/","title":{"rendered":"We’re Heading Into a Decline Phase"},"content":{"rendered":"

Yesterday\u2019s news of a trade deal between the U.S. and the UK seems like good news. Bullish traders used it as a reason to charge into the market \u2013 helping the S&P 500 to rally to its highest level since \u201cLiberation Day\u201d in early April.<\/p>\n

But, there\u2019s a good chance folks who bought stocks yesterday will regret it in the days ahead. One of my favorite market-timing indicators suggests we\u2019re nearing the end of the current rally phase.<\/p>\n

Let me explain\u2026<\/p>\n

The PMOBUYALL is a momentum indicator that fluctuates between zero and 100. When it gets to zero, most of the fuel for a large decline has been used up. Traders should look to buy stocks into any additional weakness.<\/p>\n

When the PMOBUYALL hits 100, most of the fuel for a rally has been used up. Traders should look to sell stocks and\/or establish short positions into any additional strength.<\/p>\n

Like most momentum indicators, PMOBUYALL is not an exact timing indicator. It merely tells us when stocks are in the ballpark of a reversal. We can then look to other indicators (like divergences) to fine tune the timing of trades.<\/p>\n

The following chart of the PMOBUYALL can help explain why stocks are nearing a short-term decline phase\u2026<\/p>\n\n\n

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

The PMOBUYALL rallied as high as 100 seven previous times over the past year. Each time this happened the S&P 500 was near a short-term high. The stock market declined each time the MACD turned lower when the PMOBUYALL was in this condition.<\/p>\n

The PMOBUYALL hit 100 about two weeks ago. It has been stuck at the 100 level ever since then. Now, the MACD indicator is starting to turn lower.<\/p>\n

If the current situation plays out like the seven previous situations did, then we should see a decline phase get started any day now.<\/p>\n

My guess is the S&P could drop 200-300 points in just a few days \u2013 just to work off the current overbought conditions and push the PMOBUYALL back down towards zero.<\/p>\n

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

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

Jeff Clark
Editor, Market Minute<\/em><\/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":"

One of my favorite market-timing indicators suggests we’re nearing the end of the current rally phase.<\/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":[7],"newsletter-type":[],"ticker":[],"class_list":["post-23937","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23937","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=23937"}],"version-history":[{"count":2,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23937\/revisions"}],"predecessor-version":[{"id":25136,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23937\/revisions\/25136"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=23937"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=23937"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=23937"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=23937"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=23937"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=23937"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=23937"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}