It’s been rocky for the SP500 and particularly rocky for some industry groups and sectors. The market does appear ready to give us a good bounce, but past that we aren’t overly bullish.

Tariff talk has really pummeled the Retail (XRT) industry group and we don’t see much relief in sight. The daily chart below doesn’t even show the next level of support. Friday saw a good bounce but it wasn’t enough to really improve the under the hood indicators.

Participation is anemic with all readings below our bullish 50% threshold. It will be very difficult to turn this decline around when so few stocks have price above their key moving averages. The Silver Cross Index is at a very low 16% and the Golden Cross Index is below our bullish 50% threshold. Both the Silver and Golden Cross Indexes are below their signal lines and falling so the IT and LT Bias is BEARISH. The PMO is at an extremely low reading below the zero line. We don’t see much upside available to XRT. Even if we do get a bounce, overhead resistance is very near at 69.

The weekly chart shows a bearish rising wedge that executed as expected with a drop below the rising bottoms trendline. The weekly PMO is accelerating lower. It has landed on a strong support level, but given that weekly PMO we have to wonder if this level will hold.

Conclusion: Tariff talk is taking its toll on the Retail industry group and a trade war isn’t out of the question. This will continue to put downside pressure on this group. Key support has been reached on the weekly chart, but given indicators on both the daily and weekly charts, it doesn’t look that sturdy.

The DP Alert: Your First Stop to a Great Trade!

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Bear Market Rules

The weight of the evidence shifted to the bears over the last few weeks. First, the major index ETFs reversed their long-term uptrends with Bollinger Band signals, our breadth models turned net negative and yield spreads widened. This report will focus on the breakdown in the S&P 500 SPDR (SPY), which represents the single most important benchmark for US stocks.

The SPY chart below shows weekly candlesticks and the 40-week SMA, equivalent to the 200-day SMA. On the top right, we can see a break below support from the January low and a break below the 40-week SMA with an outsized decline. An outsized decline is an exceptionally sharp and deep decline that can derail an uptrend. As of Thursday’s close, SPY had fallen over 9% in 15 trading days, the largest 15 day decline since September 2022. This exceptionally strong selling pressure pushed prices below the demand line (support) and a key long-term moving average. Note that a similar break occurred in January 2022, which we covered in a report and video on Friday.

Large-caps are also starting to lag the broader market. The middle window shows the SPY/RSP ratio breaking below its 40-week SMA for the first time since early March 2023. After outperforming for two years, large-caps (SPY) are underperforming the average stock in the S&P 500 (RSP). SPY also started underperforming RSP in January 2022, which is when the 2022 bear market started. 

So now what? SPY became short-term oversold this week and ripe for a bounce. The broken support zone and underside of the 40-week SMA turn into the first resistance levels to watch (blue shading). We are now trading under a bear market regime so I would expect any bounce to fail in the 580 area.

Our reports and videos covered the following this week:

• Six of the nine breadth-model indicators triggered bearish signals.
• Yield spreads widened as stress increased in the credit markets.
• Six major index ETFs triggered bearish Bollinger Band breaks.
• Precious and industrial metals ETFs extended on breakouts.
• Applying lessons from the 2022 bear market to the current situation.

Click here to take a trial and gain immediate access!

//////////////////////////////////////////////////////////////

In this exclusive StockCharts video, Julius analyzes US sector rotation using Relative Rotation Graphs (RRG), starting with the 11 S&P sectors and breaking them into Offensive, Defensive, and Sensitive sectors to uncover unusual market rotations. He then dives into the Financials sector, identifying top stocks with potential for outperformance — even as the sector remains one of the strongest on a relative basis.

This video was originally published on March 14, 2025. Click on the icon above to view on our dedicated page for Julius.

Past videos from Julius can be found here.

#StayAlert, -Julius

No one can predict how tariffs will play out or how severe their effects will be on everything from consumer goods to the broader economy. But investors have gotten a taste of the market chaos such uncertainties can bring.

Investor fatigue is setting in, brought on by the gnawing sense of indecision due to extreme market unpredictability. The question on investors’ minds now is, “Which stocks can withstand—or even thrive in—this erratic environment?”

Three stocks you might consider are Sprouts Farmers Market Inc (SFM), Clorox Co (CLX), and Duke Energy Corp (DUK). Here’s why:

• SFM. With a strong focus on local sourcing, Sprouts is less exposed to rising import costs, giving it a potential edge over competitors. As tariffs drive up prices on imported goods, consumers may shift toward domestically-grown produce, benefiting Sprouts’ sales and margins.
• CLX. Clorox is well-positioned to weather economic uncertainty due to its strong pricing power, allowing it to maintain profitability by passing costs onto consumers—an advantage the company has been able to maintain throughout its long history.
• DUK. Duke Energy has garnered the attention of many analysts recently. With steady cash flow, a strong dividend history, and recent analyst upgrades, it’s a stock to consider.

While these fundamental factors make them compelling investment candidates, let’s examine their technical positioning, starting with a daily chart of SFM, using the ZigZag line to emphasize the swing highs and lows that define the trend.

FIGURE 1. DAILY CHART OF SFM. The stock is at a juncture. Will it bounce or break below key support?

SFM may be the strongest outperformer among the three stocks mentioned, but right now it’s at a juncture, attempting to stay above the two support levels at $130 and, below that, $125. A break below would suggest further downside to the $103–$105 range. If SFM rallies, it needs to break above near-term resistance just above $155 before challenging its all-time high at $180 to confirm the resumption of its uptrend.

Volume-wise, the Accumulation/Distribution Line (ADL) shows money flows just hovering on the bullish side, while the Relative Strength Index (RSI) is positioned slightly above “oversold” levels, suggesting that SFM has room to run if it bounces and reverses upward.

Next, take a look at this daily chart of CLX.

FIGURE 2. DAILY CHART OF CLX. Lots of technical headwinds up above.

From September to January, CLX has been trading in a wide range with two failures to take out a two-year high at $170. However, the January drop to $144 prompted investors to think that maybe CLX is at the onset of a downtrend (lower low and lower high) if not for the March bounce from the same level.

There’s a possibility that CLX may be stuck within a lower trading range given the numerous resistance levels above the current price. For CLX to break that cycle, it would have to rise above $159, the most immediate swing high while staying above $144. If CLX closes below $144, then you may see further declines to the $135 to $140 range. For now, keep an eye on how price responds to the $144 level.

Volume-wise, accumulation seems to be slowing, according to the ADL. The RSI is above the 30-line and shows room for upside advancement, but only if CLX’s current bullish reversal can gather more bullish momentum.

Now, shift over to a daily chart of DUK.

FIGURE 3. DAILY CHART OF DUK. On the verge of an all-time high?

DUK’s near-term rally aims to test $120, potentially pushing the stock into all-time high territory if successful. Watch for sustained upward momentum or a pullback to key support.

The RSI is hovering with a slight downward tilt but remains well below the overbought threshold. Meanwhile, the ADL indicates strong accumulation, reflecting the money flows pushing the stock toward $120. Watch the volume for confirmation if the stock breaks out, and look for signs of follow-through. If the breakout fails and the stock pulls back, a bounce off key support levels could present a favorable entry point.

At the Close

SFM, CLX, and DUK each offer distinct strategies for mitigating tariff risks. There are others as well. If any of these stocks interest you, add them to your ChartLists and use the tools suggested above, or any others available on StockCharts that might better suit your approach, to fine-tune your entry. The current tariff unpredictability can change the environment quickly, so pay attention to what’s going on in the news in case you need to modify or fine-tune your strategy.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

Where can investors find a safe haven during a period of market uncertainty?  Personally, I think it’s as simple as focusing on the stocks managing to display bullish technical structures at a time when they are becoming remarkably rare!  Today we’ll use the StockCharts scan engine to identify charts showing strength despite broader market weakness.

There’s Strength in Financials But Not the Banks

The first chart on my list from this week’s scan, CME Group (CME), was featured in my recent podcast interview with Jay Woods, CMT.  We talked about how the financial sector had been quite strong so far in 2025, but that the really impressive charts were the exchanges.  

The simple fact that CME currently sits above two upward-sloping moving averages means this name is in a small subset of the S&P 500 that can still make that claim.  The momentum picture has remained quite strong, with recent pullbacks bringing the RSI no lower than the 40 level.  The improving relative strength at the bottom tells perhaps the most important story, showing how this stock has consistently outperformed the S&P 500 in 2025.

As long as the trend continues to form a pattern of higher highs and higher lows, and the moving averages continue to slope higher, I would consider this chart “innocent until proven guilty.” 

Auto Parts Remains a Strong Group in a Struggling Sector

While I’ve found numerous ideas in the Consumer Staples sector in 2025, given the renewed strength in this previously beaten down sector, this next chart is actually in the Consumer Discretionary sector.  Auto parts names like Autozone Inc. Nevada (AZO) have pulled back this week from an overbought condition, but the chart remains in a primary uptrend of higher highs and higher lows.

Similar to CME, we can observe a classic uptrend pattern over the last 18 months.  We can also see an ascending triangle pattern through much of 2024, with a fairly consistent resistance level and an upward-sloping trendline connecting the swing lows. The upside breakout in December 2024, followed by a retest of that previous resistance level into mid-January, seems to confirm the long-term bullish technical structure.

What strikes me about both of these charts is that they show no real signs of market instability.  At a time when it feels like pretty much everything is rotating lower amidst growing market turmoil, stocks that indicate they are somehow immune to bearish market forces deserve our respect and attention.

Three-Month Highs Often Signal Renewed Strength

How did I identify these winning names at a time when they seem very difficult to find?  I simply used the StockCharts scan engine to identify stocks making a new 13-week high.  You can copy and paste the text below into the Scan Workbench to run this scan using your own login.

[type = stock]

and [group is not ETF]

and [[exchange = NYSE] or [exchange = NASD]]

and [market cap > 5,000]

//and [group is SP500]

and [Weekly Close > Last Week’s MAX(13,Close)]

Those last two lines are the most important, as the rest is basically filtering the universe down to stocks traded on the major US exchanges with a market cap over $5 billion.  The fifth line has two slashes before the parameter “group is SP500”, which tells the scan engine to ignore that line.  I like to include that line in every scan I run, as I often toggle between a larger equity universe and then just to the S&P 500 members.

The final line looks for stocks where the current weekly closing price is higher than the previous 13 weekly closing prices.  And while this particular scan would certainly include stocks that have been in long-term uptrends for well over three months, I’ve found new three-month highs can be a great place to start to look for charts just beginning to emerge from a basing pattern.

For the other three stocks I found earlier this week using this scan, and much further detail on the technical implications of these charts, check out my latest video on the StockCharts TV YouTube channel!

RR#6,

Dave

PS- Ready to upgrade your investment process?  Check out my free behavioral investing course!

David Keller, CMT

President and Chief Strategist

Sierra Alpha Research LLC

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice.  The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.  

The author does not have a position in mentioned securities at the time of publication.    Any opinions expressed herein are solely those of the author and do not in any way represent the views or opinions of any other person or entity.

In this exclusive StockCharts video, Joe revisits a critical ADX signal that gave a major market warning, explaining the pattern and a new low ADX setup to watch. He breaks down SPY and QQQ support zones, sector rotation, and reviews viewer symbol requests including T, WBD, and more. Don’t miss this technical analysis update to stay ahead of the market!

This video was originally published on March 12, 2025. Click this link to watch on Joe’s dedicated page.

Archived videos from Joe are available at this link. Send symbol requests to stocktalk@stockcharts.com; you can also submit a request in the comments section below the video on YouTube. Symbol Requests can be sent in throughout the week prior to the next show.

Problem: How can you tell if an index is about to reverse—even before the price reflects it?

Answer: Look at what’s happening internally within the index—in other words, analyze market breadth, also called “participation.”

Spotting a Rebound in a Plunging Market

Like most investors, you look to the three major indices—DJIA, S&P 500, and the Nasdaq—to get an immediate glimpse of the market. But when all three are cratering, like most of the sessions we’ve seen this week and last, you often won’t find any early hint of a rebound or reversal from the indices themselves.

Indices can be misleading because they don’t reflect the movement of individual stocks within them. They are market-cap-weighted, meaning a few big stocks can skew the picture, masking broader market trends.

What this means is that, if you’re looking for signs that the market may be turning more bullish amid a wave of selling, you need to look at what’s happening internally. Are all stocks and sectors following the decline, or are some starting to rise—even if their movements aren’t reflected in the index price?

Enter the McClellan Oscillator

The McClellan Oscillator is one of many market breadth indicators that track the internal movements of the stock market and, by extension, the indices that represent them. Breadth indicators can help confirm trends and, more importantly, expose underlying weaknesses in rallies or hidden strengths in declines, helping you spot potential reversals before they appear in price.

Specifically, here’s a nutshell description of how the McClellan Oscillator works:

• It measures market breadth, tracking advancing vs. declining stocks to give a clear picture of overall participation.
• A reading above zero indicates bullish momentum (more advancing than declining stocks).
• A reading below zero suggests bearish momentum (more declining than advancing stocks).
• Crossovers help identify trend reversals. A crossover above or below zero can confirm a shift in market momentum.
• Divergences also suggest potential reversals early on. If the oscillator moves opposite the index, it may signal that a reversal may be underway.

The last two points are what I will focus on in this article. Given the current tariff-fueled plunge, are any of the three indices showing signs of a potential reversal? And, if not, what should you look out for?

Let’s start with the S&P 500 ($SPX). Here’s a daily chart. For a more expansive breadth context, I am including the Bullish Percent Index (BPI) to show yet another angle on market breadth.

FIGURE 1. DAILY CHART OF THE S&P 500. Buyers are jumping in at the key 61.8% Fibonacci Retracement level. But does the overall participation support this reversal thesis?

Anticipating a downside target, I drew a Fibonacci Retracement from the (2024) August low to the December high. Bullish traders anticipating a rebound at the 61.8% level have started to enter their positions.

From a market breadth perspective, it’s too early to tell whether this key support level will signal a reversal. The NYSE McClellan Oscillator (a large portion of S&P 500 stocks trade on the NYSE) shows that declining shares within the index outweigh the advancing shares. The BPI reading, on the other hand, confirms this reading, as fewer than 50% of S&P 500 stocks are generating Point & Figure buy signals, a condition favoring the bears as it also signals technical weakness.

What to look for in the coming sessions: Notice the pink lines on both the chart and the McClellan indicator window signaling divergences. Look for bullish divergences or a crossover above the zero line in the coming sessions. However, don’t treat these as automatic buy signals. Instead, they suggest potential bullish conditions, suggesting you construct an entry setup if one presents itself.

Now, let’s look at a daily chart of the Nasdaq 100 ($NDX).

FIGURE 2. DAILY CHART OF THE NASDAQ 100. Declines are starting to stabilize as buyers enter the market, but it may be too soon to call a reversal.

The Nasdaq 100 shows a similar Fib Retracement reaction as in the S&P 500 example above; namely, buyers are jumping in at the 61.8% level.

The McClellan Oscillator remains bearish, but declines appear to be stabilizing (see pink lines). Notably, communications and healthcare stocks are slowing the drop. While not a bullish reversal signal, this shift could lead to a turnaround depending on how other sectors react in the coming sessions. Meanwhile, the BPI at 35%, tells you that the current price environment continues to favor the bears.

What to look for in the coming sessions. Similar to the previous S&P 500 example, keep an eye on the McClellan Oscillator readings for any bullish divergence or a crossover above the zero line. Remember, these signals indicate improving market breadth and potential upward momentum, but they are not automatic buy signals. Once a positive shift occurs, it’s going to require further confirmation from price action, volume, and other technical indicators before you jump into a trade.

A Two-Step Process

What I just demonstrated was a simple two-step process. Feel free to tweak it according to your preference. When a major selloff is underway…

1. You need a means to forecast downside price targets. I used Fibonacci Retracements to set my downside targets (you can use other indicators to project potential support and resistance levels).
2. Use a breadth indicator like the McClellan Oscillator to gauge how prices react to those downside targets. Namely, divergences and crossovers should alert you to the possibility of a reversal.
3. Add other indicators to confirm the reversal when it happens. Don’t rely solely on one indicator; check price action, volume, and momentum, and have an exit plan in case it doesn’t follow through.

At the Close

Here’s the main point. You can use the McClellan Oscillator to anticipate turns in an index before it tips its hand, so to speak. It reveals shifts in market participation before such shifts become evident in prices. While major indices can be misleading due to their market-cap weighting, the oscillator focuses on breadth and momentum across all stocks and sectors comprising an entire index or market.

As of now, the S&P 500 and Nasdaq 100 show no clear signs of a bullish reversal. However, when a shift does occur, the McClellan Oscillator may be among the breadth indicators to signal it first—so keep an eye on it.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

The S&P 500 ($SPX), Nasdaq Composite ($COMPQ), and DJIA ($INDU) are trading below their 200-day simple moving averages. It doesn’t paint an optimistic picture, but the reality is that the stock market’s price action is more unpredictable than usual.

When President Trump imposed an additional 25% tariff on steel and aluminum imports from Canada, the stock market sold off. However, the selloff eased in afternoon trading, when there was a narrative shift in the tariff and Ukraine/Russia tensions front. But that changed towards the end of Tuesday’s close, with the broader indexes closing lower.

Navigating a headline-driven market is challenging. The Cboe Volatility Index ($VIX), the market’s fear gauge, eased a little on Tuesday, but has risen relatively steeply since February 21. All investors should monitor this closely, especially in a market that fluctuates several times on any given trading day.

Percentage Performance

It’s also important not to lose sight of the bigger picture. From a percentage performance point of view, how much damage has been done? To answer this question, it helps to view a PerfChart of the three broader indexes, S&P 500, Nasdaq, and Dow (see chart below).

FIGURE 1. ONE-YEAR PERFORMANCE OF S&P500, DOW JONES INDUSTRIAL AVERAGE, AND NASDAQ COMPOSITE. All three indexes are displaying weakening performance, but are still in positive territory.Chart source: StockCharts.com. For educational purposes.

Over the last year, the performance of the three indexes is in positive territory. The Dow is the weakest of the three, with a 6.87% gain. During the April 2024 low, performance was negative, but during the August low, the Dow skirted the zero level but was able to hang on. Given the trend in the performance of all three indexes is pointing lower, investors should be cautious when it comes to making decisions.

Value Performance

The daily chart of any of the three indexes is bleak. The one that looks the bleakest is probably the tech-heavy Nasdaq. Tech stocks have taken a beating of late, and the Nasdaq has been trading below its 200-day SMA for a few days (see chart below).

The bottom panel displays the percentage of Nasdaq stocks trading below their 200-day SMA. As you can see, it’s below 30%, which indicates an oversold level. There are no signs of reversal on this chart. In August, when the Nasdaq slipped below its 200-day SMA, it quickly recovered.

On Wednesday morning, investors will be tuned in to the February CPI data. Be sure to save the PerfChart in Figure 1 and the chart of the Nasdaq Composite in Figure 2 to your ChartLists. Monitor them closely, since we’re likely to see a seesawing stock market for a while.

Closing Position

Note that when viewing a PerfChart, you can also compare the performance of different sectors or industry groups in addition to the broader indexes. All you have to do is change the symbols on the chart. If you see confirmed signals of a reversal in any asset class or group, it may be time to reevaluate your portfolio allocations.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.

In this video, Dave analyzes the bearish rotation in his Market Trend Model, highlighting the S&P 500 breakdown below the 200-day moving average and its downside potential. He also identifies five strong stocks with bullish technical setups despite market weakness. Watch now for key technical analysis insights to navigate this volatile market!

This video originally premiered on March 10, 2025. Watch on StockCharts’ dedicated David Keller page!

Previously recorded videos from Dave are available at this link.

“The trend is your friend, until the end when it bends.”

How often have you heard this adage? More importantly, how often do you follow it?

Chasing stocks, whether it’s one that was texted to you as the next high-flying AI stock, a popular meme stock, or the next hot IPO, can be tempting. If you’re lucky, the price moves in your favor, you get elated, and you throw one heck of a party. Alas, the story doesn’t always end this way. The stock market can catch you off guard. It gives you several opportunities, but also unexpectedly robs them from you. This is especially true during an overextended market.

Any negative news headlines make investors nervous, leading them to make irrational decisions. To avoid falling into the trap of buying and selling stocks at the wrong time, take the smart approach and set some basic rules to follow.

Rule 1: Determine the Market’s Long-term Trend

You want to trade in the direction of the long-term trend—buy when the trend is up and sell when it is down. Buying stocks when the overall trend is declining can be like catching a falling knife, while selling stocks when the trend is rising could mean missing sizable moves. To determine the overall direction of the stock market’s long-term trend, look at a chart of a benchmark index, such as the S&P 500 ($SPX), that covers at least one year.

We’ll examine the weekly chart of the S&P 500 (see below). Overall, the index has trended higher for the last five years, but there have been pullbacks, some longer and more severe than others (pink shaded areas). The index is going through a pullback now, although we won’t know the magnitude of it until it’s over.

FIGURE 1. WEEKLY CHART OF THE S&P 500. Overall, the trend in the benchmark has been bullish, although there have been periods of declines and pullbacks. The index is going through a decline.Chart source: StockCharts.com. For educational purposes.

From January 2022 to October 2022, the S&P 500 declined over 20%. Many Wall Street analysts expected the decline to continue, but the S&P 500 recovered, ending 2023 with a 26.3% gain and 2024 with a 23.31% gain. There were a few minor pullbacks along the way, some more pronounced than others (end of 2023 and July to August 2024).

Nobody knows what the market will do, but, when you see a pullback forming—and it looks like one is forming—don’t plan on opening long positions. If you’re not convinced the market is pulling back, view a daily chart of the S&P 500 to see if it aligns with the weekly chart’s trend. If both indicate a downtrend or the two don’t align, you need to dig deeper.

Rule 2: Is Market Breadth Expanding or Contracting?

Market breadth is an effective method to uncover the percentage of stocks participating in the uptrend. The Bullish Percent Index (BPI) is one of several breadth indicators available in StockCharts and is available for indexes, sectors, and industry groups.

The chart below displays the BPI for the S&P 500 in the upper panel ($BPSPX) against the daily chart of the S&P 500 in the lower panel. When the BPI is above 50%, it indicates the bulls have an edge. When it’s below 50%, the bears have an edge.

FIGURE 2. DAILY CHART OF S&P 500 BULLISH PERCENT INDEX VS. S&P 500. Note the uptrends in the S&P 500 coincide with a BPI greater than 50. The downtrend in the S&P 500 coincides with an S&P 500 BPI of less than 50.Chart source: StockCharts.com. For educational purposes.

In the last year, besides the pullback periods in the S&P 500, the bulls have had the upper hand. If you wanted to invest in an S&P 500 stock when the bulls were in control, your first task is to find one that aligns with the bullish move.

Rule 3: Buy on Up Days, Sell on Down Days

Let’s focus on the period between August 9, 2024, and December 18, 2024, to coincide with the period when the BPI was greater than 50 and examine a hollow candlestick chart of Apple, Inc. (AAPL), one of the top cap-weighted stocks in the S&P 500.

FIGURE 3. DAILY CHART OF APPLE STOCK. From August 9 to December 18, 2024, which coincides with the S&P 500 BPI > 50, the stock price trended higher, displaying a series of hollow green candles at the front and tail end of the period.Chart source: StockCharts.com. For educational purposes.

Hollow candlestick charts are visually interesting and have the advantage of identifying a trend quickly. The upward movement began a few days before August 9, when there was a significant gap down in AAPL’s price. Even though it was a down day, the bar was hollow, which means the close was higher than the open.

Looking at all three charts, August 9 presented an opportune buy signal. It aligned with the bullish BPI and the long-term trend in the weekly and daily charts.

If you had hypothetically opened a long position, you could have exited your position on December 18, when the BPI turned bearish and made a decent return. You could have held on for a few more days, but the stock sold off quickly, so your exit would depend on how well your sell order got filled.

Regardless, you should have exited the position during the series of down days that started on December 27. If you hadn’t closed your position then and were still holding on to it, you would have been caught in the downward spiral that started when the S&P 500 BPI fell below 50 on February 27.

StockCharts Tip

Hollow candlestick charts differ from the traditional filled candlestick charts. To apply hollow candle charts, click the Hollow Candles button under Chart Attributes.

The Bottom Line

Given the erratic nature of the stock market, especially an over-extended one, a smart approach to investing requires following a set of rules. It doesn’t have to be complicated.

Identifying the long-term trend, checking the market’s breadth, and ensuring the trend of a stock you want to buy aligns with the overall market is a simple approach, but applying it successfully in real time takes practice. Practice applying the rules using a simulated account. There’s no better teacher than yourself.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.