This Is the Scariest Chart in the Market

It’s unlikely this move will happen again next month… [Jeff Clark's Market Minute]( This Is the Scariest Chart in the Market By Jeff Clark, editor, Market Minute July was a fantastic month for the bulls. The S&P 500 started July at 3775. It finished the month above 4100. That’s nearly a 10% gain in just one month. And it provided some relief to weary investors and traders who’ve been punished hard this year. But – and this is probably the most important “but” you’ll hear this year – the market is not likely to repeat July’s performance in August. In fact, if history is any sort of a guide, stock prices will probably be lower at the end of the month than where they are today. And they could be much lower in the months to come… Recommended Link [[MUST SEE]: Instant cash in 3 seconds?! Challenge accepted 👀]( My name is Jeff Clark… And I’ve got a challenge should you choose to accept it: [image]( Take away my wallet, cash, and all credit cards... Send me to any store or restaurant in America... And in 3 seconds I’ll buy anything I want – using none of my own money. [Click here to watch how I do it.]( -- Look at this long-term chart of the S&P 500 plotted along with its 20-month exponential moving average (EMA – blue line)… [chart] [(Click here to expand image)]( This chart is simple. If the S&P 500 is trading above its 20-month EMA, then we’re in a long-term bull market. If the index is below the line, then the bear is in charge. You can see how breaches of the line – in late 2000 and early 2008 ­– led to significantly lower stock prices in the months that followed (blue arrows). Since this is a monthly chart, all that matters is how this picture looks at the end of each month. And the S&P 500 ended June below the line. But just as bull markets don’t go straight up, bear markets don’t go straight down. One month ago, technical conditions were quite oversold and investor sentiment (a contrary indicator) was horribly bearish. The market was setting up for at least some sort of oversold bounce. And that’s what we got in July. Notice how the S&P has rallied back up to “kiss” the 20-month EMA from below (right blue arrow). The index is now at a critical level. 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. If the S&P 500 continues higher and can finish August well above the line, then no problem. We’ll be back in bull market mode. That’s what happened during the breaches of the line in December 2018 and March 2020. But if we start to sell off again in August, then the pattern will look more like 2001 and 2008 – and we all know what happened back then… So, it makes sense to be a little conservative here as we head into a new month. Especially, since the traditionally weak months of September and October are ahead. [Florida man leaves crypto crowd speechless…]( The bulls have had the momentum over the past three weeks. That can certainly continue in the coming days. But what really matters is how the market ends the month of August. Historically, it looks like there’s more trouble ahead. Best regards and good trading, [signature] Jeff Clark Reader Mailbag How will you be more conservative with your trades in the months ahead? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. In Case You Missed It… [Expert reveals startling new prediction about America’s future]( Former Goldman Sachs Managing Director Dr. Nomi Prins has a new kind of prediction. She believes there’s a strange phenomenon ‘distorting’ America’s financial system. If you have more than $1,000 in the bank, this could be the most important interview you see in the next 60 days. [Watch her bombshell prediction for America’s economy now.]( [image]( [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). © 2022 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](