What This Zone Tells Us About the Markets

This tells me that sellers are still firmly in control of the price action. [Jeff Clark's Market Minute]( What This Zone Tells Us About the Markets By Imre Gams, analyst, Market Minute On September 5, I provided my [latest update on the S&P 500](. I gave my readers a two-way forecast. - I called for a rally that would meet Jeff Clark’s short-term target of 4150-4200. - Then, we would go on to give back those gains. Here’s how that forecast played out… Recommended Link [The One Ticker Retirement Plan]( Over the Shoulder Demo Now Available [image]( Market Wizard Larry Benedict crushed the market in 2022. But he hasn’t done it with a “traditional” method… For a limited time, he’s sharing a free over-the-shoulder “demo” of his strategy in action. It takes less than 10 seconds… [Watch it here.]( -- First, the S&P 500 futures went on to hit 4158 during overnight trading before reversing sharply. Then, the market gave back the entirety of those gains – shedding 330 points in the process. That’s some wild trading. However, we’re not done with the volatility just yet. Back then, I also wrote that the market is likely to continue whipsawing traders back and forth with big moves in either direction. And now, we haven’t finished selling off in the S&P 500. To see what I mean, check out this chart of the S&P 500… [(Click here to expand image)]( This chart is an example of a timeless concept involving support and resistance. When a floor in a market gives way (support), prices tend to treat it as a ceiling (resistance) in the future. The opposite is also true. When the market breaks through a ceiling (resistance), it’ll treat it as a floor (support) in the future. I call these areas “zones.” They’re different from key levels, which is a specific price point. But a zone is a general area. 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. You can see how this concept worked during the last rally in the S&P 500. Prices ran all the way up to 4158, which is where the market sold off back in June (top blue line). We’re now trading just below a prior zone (middle blue line). The market broke out of this zone back in July and has now come back to see if that same zone is now a viable floor. But instead of finding support on this floor, the market crashed right through it. That tells me that sellers are still firmly in control of the price action. So, whenever the market is trading at an important zone, I pay attention. It doesn’t mean that there’s always going to be a trade, but they often generate reliable signals. [The One Ticker Retirement Plan: Over the Shoulder Demo Now Available]( The most likely move for the market is going to be to test the next floor. That zone was established when the market bottomed out at 3676 back in June (lower blue line). If sellers can bring prices back to that low, then we must wait and see if the market is ready to bounce once more. Stay tuned for next week’s update. Happy trading, Imre Gams Analyst, Market Minute Reader Mailbag Where do you think the market is heading after yesterday’s Fed announcement? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. In Case You Missed It… [Bill Gates, Jeff Bezos & More Billionaires buying $4 Stock]( Five of the world’s richest men are all investing in [this tiny $4 company](###)… That’s at the heart of an emerging trend Forbes reports is worth $130 trillion dollars. [Click here for the full story.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. [The 101 Guide to Pre-IPO Investing]( [The Ultimate Guide to Taking Back Your Privacy]( [An Insider’s Guide to Making a Fortune from Small Tech Stocks]( [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](