We’re finishing the week a little different from how we started it.

Last Saturday, following Friday’s big stock market decline, we took a look at the S&P 500 and figured the 3% drop in one day was no big deal. The index had simply pulled back from resistance on the chart and was testing support.

We guessed that if support failed, then stocks were in for a tumble. But, if support held, then the S&P was likely to bounce back up towards the resistance line on the chart.

Well… as it turned out… support held, and the market bounced. The S&P closed yesterday nearly 80 points higher than where it closed last Friday. That’s a big gain for just four trading days. But, once again… really… it was no big deal.

Recommended Link

Today @ 1 pm ET: Former hedge fund manager Teeka Tiwari’s set to release his next three “millionaire-maker” trades in a private briefing — and he believes they may have even more spectacular profit potential than the three he shared on July 12 that skyrocketed 59%, 125% and 215% in just 11 trading days… You may only have a few hours left to get in on this… Click Here To REGISTER INSTANTLY So You Make Sure You Don’t Miss a Thing

Here’s the updated chart of the S&P 500…

The index is still stuck inside its monthlong trading range. All that has happened this week is the S&P has bounced off of support and is now challenging resistance. It’s the opposite of the condition we looked at last Saturday.

So, where do we go from here?

Once again, we’re looking at two possible scenarios…

If resistance holds, and the index turns back down, then we’re probably going to test support again. And, like the little kid jumping up and down on a frozen lake, the market might just break the ice on this next test.

But, if the market can break through resistance on this current attempt, then we’re likely to see a very fast rally up towards the 3000 level (or maybe a bit higher).

There’s probably not enough energy stored up to fuel a rally to new all-time highs (above 3025). But we could certainly get a fast move higher that punishes all the folks who’ve been loading up on put options and helps to shift investor sentiment from bearish to bullish.

I’ve been arguing for an upside breakout from the current trading range. And I still think that’s the more likely scenario. And I also think that will set the stage for a more meaningful decline later in September or October.

We’ll talk more about that possibility if and when the breakout rally unfolds.

Best regards and good trading,

Jeff Clark

P.S. Before I let you go, one last thing…

I recently uncovered something strange about the gold market. I can’t give away all the information now, but what I found could be a way to make 5 to 10 times more on gold…

Like I said, I’m not quite ready to reveal what I found just yet… But I want my Market Minute readers to be the first to know. So keep an eye on your inbox next week for my announcement.

In Case You Missed It…

The 32-Second Trading Method That Helped Me Retire at 42 (Live Demo Below)

Hi, my name is Jeff Clark.

For the past 36 years, I’ve helped people from all walks of life retire wealthy. Retired school teachers… doctors… even the occasional pro athlete.

But I haven’t done it the usual way…

My method is different. It’s unlike anything you’ve probably ever seen before.

We’re unveiling it right now for just $19.

Want to see how it works?

Watch this 32-second “live demo.”