The Fed is swaying market sentiment and there is increasing potential for a market correction. Looking at the first half of the year even though there is an uptrend since March, it has felt more like a drunken stagger than a rally. Calling for a reversal in a trending rally is only for the brave or the fools. The next couple weeks will show which of those I belong with.

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If we look at the S&P we can see the MACD at the bottom of the chart crossing over and the associated dips. Now after a couple failed crossovers, the MACD is trying again but this time at a more elevated level. The bigger they are, the harder they fall. If it breaks the 10 day moving average it could look for support at the last point of resistance around the 4250 mark.

This is a good time to look at some bear market strategies that we have discussed before to be locked and loaded if we end up in the brave category.

Here are a few we have explored in past articles:

Exploiting The Bear

Don’t Fear The Bear, Grab Wins

The Best Bear Market Trading Tools

Buying Puts

What To Trade In A Falling Market

Getting Set For A Wild Trading Week

If I am wrong, I will finally get to pursue that career as a fool in the circus.

Keep learning and trade wisely,

John Boyer

Editor

Market Wealth Daily