Elazar Advisors, LLC

The news that President Trump was exonerated should have sparked a rally in the S&P 500 ETF (NYSEARCA:SPY). It did not.

That is a glaring bearish sign of good news - bad action. When you expect up and get sideways you know there's something else pushing the other way.

We think the market is about to start pointing lower. The trade news that Trump plans to extend tariffs even after a deal is signed with China is underappreciated. Tariffs have slowed down tech spending and the extension of those tariffs should continue to slow down tech spending.

Meanwhile, many semiconductor companies, including Micron (NASDAQ:MU) last week, are expecting a pickup in the back half. That's despite seeing a slowdown currently. The extension of tariffs will likely offset and push-out those expectations.

Technically we think we're about to point lower which will match fundamentals which have been slowing, a la Micron last week. Why do I focus on Micron? Because memory is in pretty much ever…

We called out that if the S&P 500 ETF (NYSEARCA:SPY) broke 277 you'd have more downside. Today's fast move through 277 could be confirmation of a down move coming in the market.

Yesterday we also called out some weak action on some decent news. The market showing weakness on good news can be a sign of a peak.

This is the first decent sign of a technical break since this up move began in late December.

We have the all important Non-Farm Payrolls report coming tomorrow morning. ADP came inline with estimates this week. Either way with the market pointing down for the first time the risk/reward is moving to the downside maybe whatever tomorrow's report brings.

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The S&P 500 ETF (NYSEARCA:SPY) traded down all day despite having good news.

President Trump was reported to decide he needs a trade deal to boost the market to get reelected.

ADP reported another strong jobs report today. It was slower than the last couple of months but inline with expectations. ADP can be a precursor to the NFP report coming on Friday. NFP is a market mover.

Lastly the Fed's John Williams said that he expects rates to remain low. One negative may be that he called out a coming period of slower growth.

Frankly we see the SPY ETF having risk to turn down here. It needs to move up in the next day otherwise the gravity after a long long long move higher, is down.

Try with a 14 day free trial, Click here.

Here's what subscribers are saying,

"The market is flat for this year and I am up over 50% in my account, thanks to Chaim!"

"Chaim, You have called it better than anyone I know over the last few months."

"GREAT RESULTS CHAIM!”

Try with a…

An S&P 500 ETF (NYSEARCA:SPY) close below 277 and we have further risk to the downside. Today's a day without much bad news but a sharp move out of nowhere needs to be listened to.

Add to that we just closed topside of 280 and quickly reversed. Stocks that led the market on the way up in the cloud/software space are down big maybe with earnings news mostly behind us.

Trade news may sound good but short term the conclusion just gets pushed out to the end of March. So traders may be selling positions they took hoping for a conclusion by now and reload as we approach month's end.

In the meantime the SPY ETF above or below 277 will help to tell you what the market wants to do next.

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We're speaking to numerous tech companies every quarter and helping our subscribers time and size the stocks and stock market.

Try with a 14 day free trial, Click here.

Here's what subscribers are saying,

"The market is flat for this year and I am up over 50% in my acc…