• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Stock Is the Correction Over? Or Are We Still Looking at a Bear Market?
Stock

Is the Correction Over? Or Are We Still Looking at a Bear Market?

by March 26, 2025
by March 26, 2025 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The S&P 500, NASDAQ 100, and Russell 2000 fell 10.5%, 13.8%, and 19.5%, respectively, from their recent all-time highs down to their March lows. Each index paused long enough and deep enough for a correction, with the Russell 2000 nearly reaching cyclical bear market territory (-20%).

At this point, there’s key price resistance on the S&P 500. Moving through it doesn’t necessarily mean we’re “in the clear.” However, failure to move through and then rolling back over increases the odds of another test of recent low price support. Check out the range I’m watching on the S&P 500:

Key price resistance, in my view, is at 5782 on the S&P 500. That was the gap support from early November and also the price support from mid-January. Now we’re trying to break above that resistance, while at the same time trying to hang onto now-rising 20-day EMA support.

As for support, the April and August lows in 2024 intersect beautifully with the March 2025 low. That’s something to keep an eye on if we begin to head lower again. The price support on the S&P 500 is now just above 5500, so a close beneath that level would be damaging – at least in the very near-term. I say that, because any new closing low would be accompanied by a higher PPO, a positive divergence. Many times, a reversing candle and a positive divergence will mark a significant bottom. So there’ll be plenty to watch over the next few days to few weeks.

I also want to show you how the S&P 500 is performing on a short-term chart vs. the NASDAQ 100, which is the more aggressive index:

It’s just a little thing, but the S&P 500 and NASDAQ 100 had been trading mostly in unison over the past week or two, but with this morning’s weakness, note that the NASDAQ 100 has moved back down to Monday’s opening gap higher, while the S&P 500 still remains well above it. Here’s one reason for it:

Since the Fed announcement one week ago, discretionary stocks (XLY) had reversed its downtrend vs. staples stocks (XLP). But check out today’s action! Maybe this is just short-term and we’ll see a reversal later, but it’s hard to be overly encouraged when staples goes up 1.14%, while discretionary drops 0.64%.

It’s a warning sign.

I know there are TONS of mixed signals out there and everyone wants to know whether this recovery is the REAL DEAL or if it was only temporary before the next shoe drops. Well, if you’re interested, I’ll be hosting a FREE event on Saturday.

Correction or Bear Market?

That’s the topic of our Saturday event, which will begin promptly at 10am ET. I will be providing multiple angles/charts/strategies and what each of them are telling us. If you’d like to join me on Saturday and would like more information, REGISTER NOW.

Even if you have a prior commitment on Saturday, we plan to record the event and send out the recording to all who register. So act now to attend and/or receive your copy of the recording.

Happy trading!

Tom

You Might Also Like
  • Options Trade Ideas YOU NEED to SEE!
  • Stock Market’s Spectacular Q3: Highest Sector Performer is Utilities
  • Ending The Sloppy Choppy Phase
  • Stock Market Stuck with a Plethora of Mixed Signals
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Stock Market Momentum Slows Down: What This Means for Investors
next post
Affirm announces JPMorgan Chase merchants can now offer installment loans at checkout

You may also like

Why the MACD Pinch Play is So Valuable

August 3, 2023

DP Trading Room: Advance-Decline Lines Explained

May 23, 2023

Jobs In the Spotlight: Stock Market Reverses Course After Massive...

April 5, 2024

Three Leading Growth Stocks Testing Gap Support

February 17, 2024

The SCTR Report: Carvana Stock Makes It To Top of...

August 5, 2024

A Grand Slam: Broader Stock Market Indexes Soar to New...

May 16, 2024

Your Money And You: This Investment Strategy May Very Well...

January 21, 2024

Unleash the Power of BPI: The Key to Boosting Your...

February 20, 2025

CrowdStrike Shows Strength and Leadership with Breakout

August 1, 2023

SP600 (IJR) Silver Cross BUY Signal May Arrive Too Late

January 31, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,632 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Equities Hit New All-Time Highs as...

    June 10, 2024

    Sector Spotlight: Energy & Tech’s Opposite...

    July 31, 2023

    You Gotta Love a Good Wedgie

    February 2, 2023
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here