Hey Traders,
Just a few days ago, folks were out there celebrating.
You could see it all over social media — the “rally” was here, they said.
Traders were jumping in with both feet like the bottom was already in.
But I wasn’t buying it.
Because I’ve been doing this long enough to know…
Markets Don’t Rally Through Resistance.
I told you last week — we had multiple layers of resistance overhead.
That doesn’t mean the market can’t go higher.
It just means if it’s going to, it’s gonna have to fight for every inch.
And usually? That fight ends in failure.
Today was one of those days.
The S&P dropped hard — back down near the March lows.
A lot of folks are pointing to the “PCE report” as the reason.
But I’ve got news for you…
It Wasn’t the News. It Was the Setup.
See, the market doesn’t move because of the news.
Traders already have their opinions baked in.
They’re just looking for an excuse to act on their feelings.
So when the market’s already under resistance and traders are feeling nervous?
It doesn’t matter if the report is neutral or even slightly positive — they sell.
If it wasn’t PCE today, it could’ve been something else:
- A China headline…
- A Musk meltdown…
- A politician opening their mouth…
Any of it could’ve triggered the same selloff.
Because This Market Was Already Poised to Drop.
And that’s what I’ve been trying to show you for weeks.
Support and resistance might be “invisible” — but that doesn’t make them imaginary.
They’re the laws of the market.
And once you learn to trust them, you start seeing things before they happen.
Not because you’re psychic…
But because you’re paying attention to the right things — price action, trendlines, volume…
“The Old Man’s Lost It”… Or Has He?
I know some of you probably thought I was off my rocker the last couple weeks.
The market bounced… and bounced again… and then bounced again.
And every time, I kept saying: More downside ahead.
Well… here we are real close to the low for the year.
So what now?
Stick With What Works
If you’ve been following my recent posts, then you already know how I’ve been trading through this mess:
✔ Bear call spreads – sell an out-of-the-money call, buy the next highest strike and collect income
✔ Short puts on weak stocks
✔ Covered calls on names I already own
I’m not trying to time the bottom.
I’m not guessing the next turnaround.
I’m just following the trend — and collecting premium while others panic.
Final Thoughts: The Market’s Not Magic — It’s Math
When you know where resistance is…
When you see momentum fading…
When you feel the emotion building…
You don’t need to guess.
You just need to prepare.
And that’s what I’ve been doing every step of the way.
I don’t care what excuse the market uses to drop — I just want to be ready when it does.
Trade well,
Jack Carter
P.S. While most traders have been wrong-footed by this market, I’ve been stacking cash thanks to setups just like this one I’ve found in Tesla. If you’ve even thought about buying TSLA, do yourself a favor and wait until you see what I’m going to show you this Sunday at 1PM ET! »Click here to save your seat now!
