![](\"https:\/\/jeffclarktrader.com\/market-minute\/wp-content\/uploads\/sites\/19\/2018\/03\/mm-3.1-mm-1.png\")
<\/p>\nWe\u2019ve looked at the action in the S&P 500 every day this week. We might as well do it again today.<\/p>\n
The stock market started out in favor of the bulls yesterday. The S&P 500 rallied 16 points on the opening. And it climbed well above the 2750 level \u2013 which it had to do in order to keep the bullish argument alive.<\/p>\n
But like so many opening moves over the past two weeks, the rally was a \u201chead fake.\u201d Sellers stepped up and the S&P dropped to a lower low after the first hour of trading. That sort of action often leads to more weakness later in the session.<\/p>\n
That\u2019s exactly what we got.<\/p>\n
Buyers disappeared in the final hour. Computer sell programs kicked into gear. The stock market closed at the low of the day. And the short-term momentum shifted back to the bearish camp.<\/p>\n
Here\u2019s an updated look at the 15-minute chart of the S&P 500 I\u2019ve been showing you all week\u2026<\/p>\n
<\/p>\n
The index has clearly broken below the 2750 support level. It\u2019s below the 2730 level at which I suggested aggressive traders could take a short position. And it\u2019s approaching the support of last week\u2019s low near 2700.<\/p>\n
At the moment, there\u2019s nothing really wrong here. The S&P has simply fallen back into a rather large trading range between 2700 and 2750. Since we\u2019re in the lower part of that range, the bears have the momentum. But as long as the 2700 level holds as support, the bulls can still make an argument for higher prices.<\/p>\n
If the S&P closes below 2700, though, that negates any bullish argument. The index will be headed lower \u2013 with an immediate target at about 2660, and a potential target of the closing low of the correction at 2581.<\/p>\n
Best regards and good trading,<\/p>\n
![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
<\/p>\n
Jeff Clark<\/p>\n
Today, a reader writes in with a trade idea\u2026<\/p>\n
\nI read your Market Minute<\/i> every morning. We often seem to reach similar conclusions.<\/p>\n
Have a look at QQQ. Highly recommended by Morningstar, et.al, full of high-priced FAANGs. The bulls are riding it to the moon, right? But it appears to be painting a classic double top with a neckline at 150 \u2013 complete with diverging RSI<\/a><\/u><\/span> and PPO<\/a><\/u><\/span> on the weekly, daily, and hourly charts.<\/p>\n
I bought puts on Feb 16. Too early. Gritted my teeth and held my position as the S&P struggled through 2754 yesterday. Did it roll over today (2\/27\/18)? Looks like a fine outside day reversal.<\/p>\n
Cheers!<\/p>\n