The S&P May Break This Important Trendline -- But Don't Panic Just Yet... [View Online]()|[Unsubscribe]( [Street Authority Daily] -[]Recommended Link [The $7 Secret to $1,000 in Upfront Payouts]( From Our Partners [The $7 Secret to $1,000 in Upfront Payouts]( Extract $500⦠$1,000⦠even $1,500 in upfront payments from some of the market's hottest blue chip companies⦠without buying a single option. It's unlike anything you've seen before, and it's never been more affordable to get started. [Click here for details.]( September 22, 2021 The S&P May Break This Important Trendline -- But Don't Panic Just Yet... By Amber Hestla [Amber Hestla] The SPDR S&P 500 ETF (NYSE: SPY) closed lower again last week. The ETF is now about 2.8% below its all-time high. Yet, despite the fact that major stock market averages are near all-time highs, there is a sense of panic in the market. To understand this feeling of panic, I took a look at Barron's. This website almost always has a gloomy outlook and reflects the bearish outlook in a succinct manner. [This weekend, Barron's noted](... Wall Street has found something scarier than tapering, taxes, and China Evergrande Group combined. It's called the 50-day moving average. -[]Recommended Link [We Just Launched An Exciting New Level of Personal Finance]( If you're someone who's looking for MORE⦠MORE - faster moving - profit opportunities capable of multiplying even the smallest of starting stakes into $440 ⦠$551 ⦠$752 ⦠$1,500 ⦠and even $2,000 of pure profit⦠Over and over again⦠Then stepping up to Personal Finance PRO is the best - and smartest - move you can make today. [I'll show you how here.]( The predictions of impending doom from Wall Street's talking heads continued this past week. The reasons for a pullback are many: The stock market has rallied for too long and has gone up too smoothly, the Federal Reserve is about to remove the bond buying that has helped prop markets up, taxes are ready to rise, economic data are slowing. None of it really left a mark. But the 50-day moving average has been important in the market's recent advance. As of Monday's close, SPY has now gone 219 days without two closes below its 50-day moving average. That's the second longest streak since 1990. As we are going to press on Tuesday afternoon, we may see that streak broken by the time markets close. The longest streak took place back in 1995. It ended in January 1996 after a 31% run, a gain that mirrors the current one. In the next chart, I've zoomed in on that specific period. After that streak, there was some volatility, but the market continued its strong rally until 2000. The strength seen in 1995 was a setup for years of additional gains. Looking Ahead The current situation could be exactly the same. There are reasons to expect additional gains in the stock market that could drive prices higher for years. The primary factor is the Federal Reserve's low interest rate and easy money policies. In addition to that, earnings growth should remain strong as the economy continues to recover from the pandemic-induced recession. But investors seem to be caught up in the short-term headlines. Sentiment declined sharply last week, according to the American Association of Individual Investors survey.
Source: [AAII]( A large number of individuals turned bearish after a 3% drop in the S&P 500. This isn't unprecedented. We often see sharp shifts in sentiment. But the investors making those changes are often wrong. It's interesting that we see an even larger decline in sentiment in 1996, after the S&P 500's 250-day streak above its 200-day moving average. Bears at that time were on the wrong side of the major trend. It's possible that history is repeating itself now. That said, after looking at my indicators, I am cautious in the short run. This week, my ITV indicator turned bearish for SPY. While I'll be keeping an eye on this, it could just be normal volatility similar to what we saw back in 1995. ITV is similar to VIX in that it rises as prices fall. Its current position, with the indicator (red line) breaking above its moving average (blue line), it is possible we could see additional weakness in SPY. But, according to my Profit Amplifier Momentum (PAM), there is reason for optimism. PAM is designed as a short-term indicator. It's at the same level of oversold extreme seen in July, which was followed by a sharper rally. For the short term, based on my indicators, it's best to watch the market action in the first part of the week. It's possible a rally will ensue from this oversold extreme. It's enough of a possibility that I remain slightly bullish on the S&P 500 in the short term. Meanwhile, over at my [Maximum Income]( premium service, we are using a strategy that works in any kind of market... Thanks to a "loophole" that most investors don't even know exists, we use a strategy to get paid immediately for positions we hold in our portfolio. If everything goes according to plan, we can repeat this strategy again and again, allowing us the chance for thousands of dollars in extra income from the stock -- as well as the chance to collect regular dividends. Most Americans have no idea about this simple strategy... But it has the power to protect your portfolio on the downside, while supercharging your income as well. And once you know how it works, you can make trades like this in as little as six minutes... [Go here to learn about this secret income plan before word gets out.]( -[]Recommended Link [I LOVED this ]( [I LOVED this "pot biotech" a few months ago⦠now???]( For months, I've been following a little-known ["pot company" that⦠oddly enough, doesn't sell pot.]( Earlier this year, I was confident it could be the biggest investment opportunity in the history of legal marijuana. But Now? With the recent market volatility⦠I'm more confident than ever! In fact, this company's recent moves could put you on the fast track towards pocketing an extra $308,889 ⦠But don't just take my word for it: [Click here to see the opportunity for yourself.]( To ensure that you receive these emails, [please add us to your address book.]( Disclosure: StreetAuthority doesn't own shares of any securities mentioned in this article. Members of our staff are restricted from buying or selling any securities for three days after being featured in our advisories or on our website. StreetAuthority is a publisher of financial news and opinions. StreetAuthority is not a securities broker/dealer or an investment advisor and we do not recommend or endorse any brokers, dealers or investment advisors. This work is based on SEC filings, current events, interviews, corporate press releases and publicly available information which may contain errors. All information contained in our newsletters and/or on our website(s) should be independently verified with the companies or sources mentioned. You are responsible for your own investment decisions and should always conduct your own research and due diligence and consider obtaining professional advice before making any investment decision. This message was sent by an automated message delivery platform. Please do not reply to this email address. Any messages sent to this address will be automatically deleted. We sincerely hope that you benefit from your subscription to this complimentary newsletter, and we're willing to do whatever it takes to keep you as a satisfied subscriber. You may contact our customer service department by [visiting this link](. To update your subscription or unsubscribe, please [click here](. Copyright (c) 2021 StreetAuthority, 7600A Leesburg Pike, Suite 300 Falls Church, VA 22043. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited. [Terms]( | [Privacy]( | [Unsubscribe](