\tI’m not so sure the bulls will be that lucky this time around.<\/p>\n
\tAs I told my Delta Report <\/em>subscribers on Friday morning, the typical action prior to a Federal Open Market Committee (FOMC) meeting – taking place this Tuesday and Wednesday – is for the market to be lower on Friday and Monday, then for stocks to rally on Tuesday and Wednesday morning<\/p>\n \tSo, I didn’t think the opening gains on Friday would hold. And while the S&P 500 only closed down two points, it closed 15 points below the high of the morning.<\/p>\n \tThe NASDAQ closed a whopping 133 points lower than its early-morning high. That’s a BIG drop – more than 2% from the high. That’s the biggest decline we’ve seen in the NASDAQ since the “Trump rally” began. And it’s significant.<\/p>\n \tWith that in mind, here’s what to look for in the action today…<\/p>\n \tI could go into a long-winded and very technical discussion of pattern evaluations. But most of you likely don’t have much interest in that. So, I’ll just cut to the chase…<\/p>\n \tThe NASDAQ has probably seen its high for the year. But the S&P 500 and Dow Jones Industrial Average still have the potential to make slightly higher new highs.<\/p>\n \tSo, it’s still probably a little too early to be looking to short S&P and Dow stocks. Most of them look like they can push higher one more time. And, if they do, then most will form negative divergence on a number of technical indicators. Any rally from here is on borrowed time.<\/p>\n \tThe NASDAQ, though, already violated its previously bullish pattern. Friday’s decline shifted the intermediate-term trend from bullish to bearish.<\/p>\n \tOn a short-term basis, most NASDAQ stocks are slightly oversold. If the typical pre-FOMC pattern plays out today, they’ll be slightly more oversold and set up for a bounce tomorrow and Wednesday morning.<\/p>\n \tI’ll be looking to sell the top NASDAQ stocks short into that bounce.<\/p>\n \tThis analysis is based on the relationship between the index and its 9-day exponential moving average (EMA). The S&P 500 closed Friday above its 9-day EMA. So it’s still in a bullish configuration.<\/p>\n \tThe NASDAQ, however, closed below its 9-day EMA. That shifts the short-term momentum to bearish. So there’s more downside ahead.<\/p>\n \tWhile I think the S&P 500 has the potential to make a higher high over the next few days, I expect the NASDAQ will make a lower high. And I’ll be looking to short some of the most popular momentum stocks into that event.<\/p>\n \tI’ll update Delta Report<\/em> readers on these trends throughout the day on Jeff Clark Direct<\/a>.<\/p>\n \tBest regards and good trading,<\/p>\n \t \tJeff Clark<\/p>\n \tP.S.<\/strong> Last week, I released my brand-new trading system for my subscribers. It involves trading around “profit windows<\/a>” that open up at certain times each year, due to the meddling of the federal government.<\/p>\n \tSome have already seen huge gains in a short amount of time, like 100% in under 24 hours… exactly what the system was designed for.<\/p>\n I’ve created a brand-new presentation<\/a> that explains it all… and you can access it right here<\/a>. <\/p>\n \tStocks<\/h2>\n
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