Is the Bottom In? What the S&P 500 Is Telling Us About What’s Next
The S&P 500 (SPY) has been trying to stage a comeback after one of the fastest 10% corrections in recent memory. Right now, we’re still above an important support zone — roughly that $557 area.
That’s where we got the first signs of life a couple weeks ago, with a strong Friday close that sparked a bounce.
If we can get a close above $580, that would give bulls even more reason to lean in. But even if we don’t, just holding this range is a positive sign – as long as we actually hold it!
What we’re looking for now is whether the early-week bullishness is just a temporary bounce, or the start of something bigger.
Here’s the thing: The speed of the correction is actually encouraging.
According to Fundstrat’s Tom Lee, this was the fifth-fastest correction in history. And historically, all of those quick flushes led to higher prices 3, 6, and 12 months later.
Combine that with the fact that AAII bearish sentiment has been above 55% for three straight weeks — something we’ve only seen once before (March 2009) — and the case for a bullish bounce gets stronger.
Of course, there’s still plenty of noise out there and the market has definitely cooled off the past couple of days.
The bad inflation report today didn’t help.
But from a sentiment and price-action standpoint, it looks like the market could possibly still surprise to the upside heading into Q2.
Looking Ahead to Q2
We’ve got just a few days left in the first quarter, and let’s be honest — it’s been a wild one.
That’s why today at 4:30 PM ET, Sarah is jumping into the LIVE room to walk through what I’m watching for Q2.
It’s not just a general outlook — we’ll show the one setup I’m focusing on for the next few months, and how to potentially use it to spot opportunity in this still-volatile market.
No one can promise wins or prevent losses — that’s trading. But having a clear game plan makes all the difference.
If you’re looking to prep for Q2 and want to see the strategy I’m zeroing in on, don’t miss today’s session.
Hope to see you there!
— Nate Tucci
