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The S&P Hits a Sideways Correction Because of the Feds

by Tom Luong, April 11, 2022
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There’s no two ways about it.

The Federal Reserve’s most recent attempt to curb inflation is causing the market to move sideways.

It doesn’t help that the Russia-Ukraine war is exasperating the global economy in ways we haven’t seen in a long time. 

Not to mention, every single major government has been non-stop printing paper money ever since the pandemic started.

Are our elected financial officials making the economy better… or are they experimenting with wacky ideas because they’ve never faced a pandemic situation before?

Nobody knows for sure.

Either way, Stock Navigators are playing the market both ways to make sure we come out with cash in our pockets.

Macro Trend Breakdown

We Saw Historic Bearishness in Q1

For the first time in 2 years, all 3 major indices closed in the red.

There’s no doubt it’s because of high inflation… tightening monetary policy… the Russia-Ukraine war… and geopolitical instability. 

Here’s a chart of the E-mini S&P 500 futures (ES)...

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As you can see, we’ve hit a sideways correction.

Same thing with the Nasdaq…

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It ran up very fast, then started pulling back into a sideways correction.

The same thing happened with the Dow…

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Of course, there’s nothing to worry about.

We’ve got to remember that the market ebbs and flows.

Just like the ocean tide, it moves up and it moves down. 

But when the market looks this jumpy, it’s best to move in and out of stock quickly.

This way, we can secure our profits while staying nimble.

As Stock Navigators, we read the tide and “go fishing” for the best performing stocks - click here to see how we’re playing this jumpy market.

Sector Highlight

Energy is On Fire

The energy sector is continuing to rally higher and higher.

Just take a look at this chart of the Energy Select Sector SPDR Fund (XLE)...

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That green dotted line in the middle is the 200-day moving average. 

XLE’s 200-day MA is currently at $58.80.

And right now, it’s trading 20 points above the 200-day MA. 

This sector continues to post higher lows and higher highs and I’ve got my eyes glued to this entire industry. 

If it’s time for us to make a move in energy, I notify the Stock Navigators through our private portal. 

If you’d like to start getting all my recommendations, click here to learn more about Stock Navigators.

Market Signals

What I’m Watching When the Fed Makes a Move

When the FOMC makes an announcement, a lot of noise follows.

So the big question is… what do you watch out for when the Fed does something?

Well, with technical analysis… we’re focusing on one thing and one thing only.

And that’s the Money Zone.

Take a look at this chart…

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Notice that big, blue box that says Buy Zone?

That’s what I’m watching for.

And I know when a stock hits that zone, it’s time to move in.

In fact, I send out an email and text alert to my readers whenever a stock hits the Buy Zone.

I provide the entry price, exit price target, as well as the stop-loss.

So if you can receive an email, you can trade the Money Zone too.

Click here to learn more about the Money Zone.

Related Articles

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