Hey Traders,
Take a look at these charts of SPY, DIA, and QQQ — and then think back to where we were just a few months ago.
Back in early March, the market was starting to break down.
SPY was falling hard. QQQ was sinking. DIA was already rolling over.
The headlines were panicked, the price action was messy, and traders were either frozen in place or chasing moves they didn’t understand.
But if you’ve been following me, you know what I told you back then:
- Watch the trendlines
- Don’t sit there and “hope”
- Trade what you see
That’s what I’ve been preaching since day one.
And through all the chop — through all the “will we or won’t we rally?” days, the fake breakouts, the panicked selloffs, and the screaming headlines — we stuck with the structure.
We Knew What to Look For
When the market dropped below the 20, 50, and 200-day EMAs?
We didn’t panic. We adjusted.
When it bounced and hit its head on the 50-day and turned back down?
We didn’t chase. We stayed disciplined.
And then, when the price finally broke through the top of that range and started to hold above all three trendlines?
We didn’t call it a bull market…
We said: “Let’s watch. Let’s see if this holds.”
Because that’s what smart traders do.
We don’t sit there and try to predict. Because predicting is just guessing.
We react to what’s in front of us — not what we hope might happen.
So Where Are We Now?
Now, as we close out May, here’s what we’ve got:
- All three major indexes are above their 20, 50, and 200 day moving averages.
- QQQ has already crossed over into a bullish alignment with the short term trend on top, mid-term trend in the middle and long term trend on the bottom.
- SPY is almost there, not quite, but that bullish alignment is starting to form.
- Even DIA — the lagging index lately — is almost starting to get a bullish crossover.
That’s structure. That’s momentum turning. And it’s happening exactly the way the chart said it would.
No guessing. No prediction.
Just following the lines.
Final Thoughts
I don’t have a crystal ball.
I didn’t “call” this market recovery because I had some secret information or magical indicator.
But I just kept reading the chart. I stuck to the process. And I shared that process with you.
Now we’re in a spot where — if this holds — we may get a full bullish stack on all three indexes. That’s the cleanest kind of market to trade.
And if that happens?
Well, you’ll already be on the right side of it — because you’ve been watching with me the whole way.
So I’ll tell you this:
If you’ve been here the past few months — and you’ve been paying attention — then you’ve already learned how to trade with your eyes open. And that’s what sets you apart.
If you want, you can even go back and read the articles from the past 8-12 weeks. There’s a goldmine in there if you’re paying attention.
Trade well,
Jack Carter
P.S. May is over and fund managers are about to start setting up their buying for June. And my historical data shows these tickers are set to soar!
