{"id":9269,"date":"2018-04-12T07:30:48","date_gmt":"2018-04-12T11:30:48","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=9269"},"modified":"2018-04-12T07:30:48","modified_gmt":"2018-04-12T11:30:48","slug":"this-could-signal-the-end-of-the-correction","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/this-could-signal-the-end-of-the-correction\/","title":{"rendered":"This Could Signal the End of the Correction"},"content":{"rendered":"

The stock market is doing exactly what it needs to do in order to play out the bullish scenario I outlined on Monday<\/a>.<\/p>\n

If you recall, the S&P 500 started the week at 2604. The 60-minute chart of the S&P 500 was showing a potentially bullish “inverse head and shoulders” pattern. A move above 2675 could spark a rally all the way back up to 2800 over the next few weeks.<\/p>\n

Here’s an updated look at that chart…<\/p>\n

\"\"<\/p>\n

As you can see, the index rallied nearly all the way back up to the neckline of the pattern before pulling back a bit on Wednesday. That pullback, however, looks quite constructive to me.<\/p>\n

You see, the market has held on to most of Tuesday’s big gains. And the pullback has helped to relieve some of the short-term overbought conditions – which helps to set the stage for another rally attempt and another shot at the 2675 level.<\/p>\n

At this point, I’d argue that as long as the S&P 500 doesn’t drop below Tuesday’s intraday low near 2612, the odds favor the bulls.<\/p>\n

The daily chart of the index also shows a potentially bullish setup. Take a look…<\/p>\n

\"\"<\/p>\n

Since the start of April, this chart has formed a higher high and a higher low. One more push to a higher high would increase the chances of a new up-trend beginning and signal the end of the recent correction phase.<\/p>\n

Tuesday’s rally nearly got us that second “higher high” – but not quite. So the jury is still out.<\/p>\n

But despite yesterday’s pullback, the S&P is still holding above its 9-day exponential moving average (the red line). If that level holds as support, then the bulls maintain the momentum. Stocks are likely to move higher.<\/p>\n

Of course, there are no guarantees. And if the S&P drops below the 2612 level, then all bets are off.<\/p>\n

For the moment, though, I like the chances of an upside breakout and a solid rally over the next few weeks.<\/p>\n

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

<\/p>\n

Jeff Clark<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

How have you traded this week’s market action? Placed your bets on a strong move higher? Let us know right here<\/a>…<\/p>\n","protected":false},"excerpt":{"rendered":"

Watch this chart and you’ll know when the correction is over…<\/p>\n","protected":false},"author":34,"featured_media":0,"comment_status":"closed","ping_status":"open","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-9269","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/9269","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\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=9269"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/9269\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=9269"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=9269"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=9269"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=9269"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=9269"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=9269"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=9269"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}