How Quickly Things Change

We should be looking for bearish trades in the stock market… [Jeff Clark's Market Minute]( How Quickly Things Change By Imre Gams, analyst, Market Minute We should be looking for bearish trades in the stock market… At least that’s what my [mechanical scoring system]( says. On Monday, April 15, the S&P 500 (SPX) broke below two key moving averages on the daily timeframe. These two moving averages are the 20- and 50-period. Together, they can give us important clues about the likely direction of the market. Recommended Link [New Trump Bombshell]( [image]( Louis Navellier just issued a shocking election prediction for 2024. “I believe Donald J. Trump will go down as America’s last Republican president. But NOT for the reasons you may think… [Click here]( to see my 2024 election prediction. If I’m right, the soul of this country will change forever…” –Louis Navellier [Get the details here.]( -- Here’s a quick recap of how this scoring system works from when I first brought [it to you]( The scorecard can have a maximum rating of +3 and a minimum rating of -3. A +3 rating is ultra-bullish. +2 would be strongly bullish. +1 means the market is mildly bullish. A score of 0, of course, would mean we are neutral. And on the other side of the spectrum, -3 means we are ultra-bearish. -2 would be strongly bearish and -1 means the market is mildly bearish. Right now, the market is giving us a score of -2. That’s because the market is currently trading below both moving averages. If the slope of the moving averages were to turn negative, then we’d have a maximum bearish score of -3. This a complete and total U-turn from the maximum bullish score of +3 we had at the beginning of the month. You can check out an updated chart of the SPX with the 20- and 50-period moving averages below so you can see what I mean. [(Click here to expand image)]( As you can see, the SPX has broken below both those moving averages. But crucially, the slope of those averages remains neutral. At least for now... If the market continues to break down hard, then we’ll get a score of -3. According to the system, that means traders should be playing the downside in the stock market. Now, it’s important to note that just because we have a bearish score, it doesn’t mean that traders should rush into bearish bets immediately. 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. As Jeff noted on [Friday]( the market is currently oversold and likely to have a short-term bounce. So this could be the makings of a potentially great two-way trade. Aggressive traders could look to buy the market and if the bounce looks to be running out of steam, sell the market on its way back down. Happy trading, [Signature] Imre Gams Analyst, Market Minute [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](