For short-term periods, I like to use the 9-day exponential moving average (EMA)<\/a> and the 20-day EMA.<\/p>\n All of these moving averages are useful in helping determine a stock\u2019s trend over various timeframes. The real value, though, is when all of these averages line up and move in the same direction. That\u2019s when you can have confidence that a trend is intact.<\/p>\n For example, take a look at this chart of the S&P 500 along with its 50-day MA (blue line), 20-day EMA (green line), and 9-day EMA (red line)\u2026<\/p>\n For most of the past year, the moving averages have been in a bullish configuration. They were moving higher and they were bullishly stacked \u2013 with the 9-day EMA above the 20-day EMA, which was above the 50-day MA. That\u2019s what happens in an uptrend. So, traders can look at the moving average configuration and be confident in their bullish bets.<\/p>\n Of course, the stock market doesn\u2019t always make it so easy. In April and in August last year, the moving averages came together. They weren\u2019t stacked on top of each other. And that was a warning sign that the intermediate-term trend for the stock market might be changing.<\/p>\n It didn\u2019t happen. Instead, the moving averages turned back up. They stacked on top of each other again. And we got this tremendous rally that lasted until the end of January.<\/p>\n Now, however, we\u2019re looking at a different situation. The moving averages have shifted to a bearish configuration. They\u2019re bearishly stacked \u2013 with the 9-day EMA at the bottom, the 20-day EMA on top of it, and the 50-day MA above them both.<\/p>\n This tells us the intermediate-term trend \u2013 meaning the next several weeks \u2013 is now bearish.<\/p>\n Anything can happen in the short term, of course. But with the moving averages in a bearish configuration, the odds favor more downside action in the weeks ahead.<\/p>\n So, I continue to look for the S&P 500 to retest its 2581 closing low \u2013 maybe even dip a little below it \u2013 before the current correction phase is over.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n P.S. <\/strong>In this highly unpredictable period of stock action, traders are looking for a way to post gains without having to rely on the broad market. That\u2019s why I\u2019m sending out a conservative trade to my subscribers in just a few hours \u2013 something where the reward greatly outweighs the risk, and has the potential to lock in a nice return over the next few weeks.<\/p>\n These are the kinds of trades my Delta Report<\/em> subscribers have gotten used to getting\u2026 no matter which direction the market heads. To learn how you can join them, and start receiving my weekly trade recommendations every Tuesday, click here<\/a>.<\/p>\n Yesterday, we got one of the fullest mailbags we\u2019ve ever seen\u2026<\/p>\n Jeff, I am a new and enthusiastic subscriber to Delta Report<\/em>. I subscribed because I remember your exceptional accuracy\/return rate from your days affiliated with your previous publisher. Thanks for “reappearing.\u201d Best regards,<\/p>\n \u2013 Fred<\/strong><\/p>\n<\/blockquote>\n <\/p>\n I just want to thank you for your knowledge of the market and for your concern for each of us as traders. I’ve been with you for a long time; and I appreciate your work so much! Thanks again! You’re great!<\/p>\n \u2013 George<\/strong><\/p>\n<\/blockquote>\n <\/p>\n I’d just like to say that I totally appreciate your view and recommendations.\u00a0I paid the money to your previous publisher when you were there primarily for your work.\u00a0And now I’ve followed you here as well.\u00a0I’m not the least bit frustrated with your approach to the markets.\u00a0I love the technical analysis and your outlook of being mostly cautious and wise but also speculative when the opportunity is there.\u00a0I appreciate the value of your work and hope you keep it up!\u00a0Thank you!<\/p>\n \u2013 Lance<\/strong><\/p>\n<\/blockquote>\n <\/p>\n Jeff, Thank you yet again for your guidance. I took some of your option trades as recommended (DDD, GE. GDX\u00a0& SPY)\u00a0and yes, I often read between the lines or take the aggressive side (not suitable for Mom trades).<\/p>\n In addition I put these on a watch list for opportunities, and this week I took stock positions as they seemed to find support (GE at $14, for example).\u00a0While I am keeping the options positions following your guidance, I was pretty short-term on the stock trades, getting out yesterday.\u00a0As a result, I was able to take\u00a0significant profits this week.\u00a0My confidence to do this is due in large part to your very educational posts. You do so much more than just make recommendations, you also are a tremendous educator.\u00a0Thank you.<\/p>\n \u2013 Bill<\/strong><\/p>\n<\/blockquote>\n <\/p>\n Dear Jeff, I would like to thank you for not only making money on most of your recommendations, but also for growing as a trader. I learned a lot, and keep learning.<\/p>\n It is interesting that I started trading based on your general guidance, feeling I could make more money engineering my own trades. Then I noticed that I would make more money following your recommendations in the blog exactly. But I also was learning, and using your education section.<\/p>\n Very much appreciate the service. I wish the negative nattering comments could be eliminated, just to keep you happy and in optimum frame of mind. There is enough stress in the market itself.<\/p>\n \u2013 Kirill<\/strong><\/p>\n<\/blockquote>\n Also, two comments on Monday\u2019s essay, \u201cGold\u2019s Decline Is Temporary\u201d\u2026<\/a><\/p>\n Not hard to understand the manipulation with the number of short contracts placed.<\/p>\n \u2013 Bernard<\/strong><\/p>\n<\/blockquote>\n <\/p>\n Don\u2019t you think that you should add a manipulation indicator into your arsenal of technical analysis?<\/p>\n \u2013 Charles<\/strong><\/p>\n<\/blockquote>\n Thank you, as always, for your thoughts, questions, and stories. Keep them coming right here<\/a>.<\/p>\n![\"\"](\"https:\/\/jeffclarktrader.com\/market-minute\/wp-content\/uploads\/sites\/19\/2018\/03\/Screen-Shot-2018-03-06-at-11.12.47-AM.png\")
<\/p>\n![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
<\/p>\nReader Mailbag<\/strong><\/h2>\n
\n\n
\n \n A Small Request<\/strong><\/h3>\n