Stock Market Correction Update!

Author

Brian Bond, CMT
May 03, 2024

Two weeks ago, I wrote about the current correction the stock market has been going through. Since then, there has been some positive progress.

If you missed it or would like a refresher, click the button below for The Stock Market Correction Playbook.

Here’s an update with some illustrations of where we stand as of today’s stock market close.

The 3-Step Correction Playbook

Step 1. The S&P 500 closed above the red line, its 21-Day Moving Average. ✅

Step 2. Price put in a nice low on April 19th and has been climbing higher ever since, but it still hasn't broken out above its most recent high of around 5,200. In the coming weeks, it will be important for the market to remain above that low from April 19th. It can go sideways, or up, just not below that low. If it does, that would indicate that the short-term downtrend lives on. 🧐

Step 3. Our Momentum reading hit 53.6. It hasn’t cleared our benchmark of 60 yet, but it’s getting close. ⛔

I'd give that a 1.5 out of 3 for the Market Correction Playbook - a nice start, and a strong finish to the week.

Have a great weekend!

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