Keep Your Eye on This Chart...

“Sell in May and go away” is a well-known saying on Wall Street. [Jeff Clark's Market Minute]( Keep Your Eye on This Chart… By Jeff Clark, editor, Market Minute “Sell in May and go away” is a well-known saying on Wall Street. It highlights the calendar shift from the best six months of the year for stock prices to the worst six months. It suggests investors take some chips off the table, enjoy the summer, and come back when the leaves start to fall. This year, though, investors might not want to wait until May – depending on what happens to this chart… [(Click here to expand image)]( This is the chart of the S&P 500 plotted against its 20-day exponential moving average (EMA). Ever since the index rallied above its 20-day EMA at the end of October – thereby kicking off the “best six months of the year” – the line has been support on every minor pullback. Indeed, the S&P has tested its 20-day EMA nine times during this rally. Each time, the line held as support and stocks resumed their rally. Recommended Link [With This Bubble, “Wait And See” Could Cost You Everything]( [image]( The concept of a “safe portfolio” is about to be completely redefined. For the last year and a half, everyone has been pushing their money into cash. But what if there was a hidden risk that was going to leave them exposed? I’m not talking about the death of the dollar or anything silly like that. [On May 1, the cash bubble is going to pop and many will be left reeling. I put together a free video for those who are willing to think outside the box.]( -- So, this is a critical level. Up to this point, the smart move was to buy on each test of the 20-day EMA. Now though, as the calendar starts to shift, the “smart move” starts to shift too. Free Trading Resources Have you checked out Jeff's 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 – at zero cost to you. Just [click here]( to check it out. When the index closes below its 20-day EMA it will likely mark the start of an intermediate-term correction phase that lasts for several weeks, at least, and knocks 10% or more off of the index. In other words, if the S&P closes below 5,180 then it’s probably headed towards 4,700 or so over the next several weeks. Of course, the S&P hasn’t done anything wrong yet. It’s still trading above its 20-day EMA. So, the rally phase is still intact. It’s certainly possible the market can keep rallying through the end of this month, and close out its best six months on a strong note. But, traders should pay attention to this chart. If the S&P closes below its 20-day EMA, we’re not going to want to wait until May to hit the “sell” button. We’ll be better off selling in April. Best regards and good trading, [signature] Jeff Clark [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](